Energy Ombudsman compensation levels

keiran

MoneySavingExpert Insert March 18:

For help if you're considering using an Ombudsman please read our fully researched guide: Your Financial Rights: Complain, get help & compensation.

Back to keiran's original post...

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I finally sent my complaint to the Ombudsman about Scottish Power. It was a lot of work and I hope it wasn't wasted work - I think the Ombudsman is in bed with the power companies.

I had 2 questions for esteemed MSE'rs:-

1) How much does a referral costs the companies ? ( who have to pay a certain amount to the Ombudsman service for every case that they haven't been able to resolve)

2) What sort of compensation levels are achieved, especially for time/inconvenience/hassle elements?
If individuals can report their successes, it will be a valuable guide to others who may be considering a referral

Thanks

stewie_griffin

There are a couple of case stories on the Ombudsman's website

http://www.ombudsman-services.org/advice-and-stories-energy.html

Their annual report has more detail about the financial awards. the majority are below £100

http://www.ombudsman-services.org/downloads/Energy%202011%20AR.pdf

TIMMY85

I believe it costs the supplier around £175 (am not sure though). Most suppliers obviously do not want a complaint to go to ombudsman and would try to reach resolution sooner.
The ombudsman will tell the supplier to correct an error that has occurred but it is unlikely to award a huge sum of compensation. Its very unlikely that you would get any payment for your time/effort especially as statutory compensation for things like missed meter appointments are so low.

littletommytucker

The amounts usually awarded are much less than some people imagine. As the previous poster has advised, they are nearly always under £100.00.

If you've already been offered a compensation amount by your supplier but instead have chosen to try your chances with the ombudsman for a higher amount, then you will probably be disappointed.

Energy suppliers normally offer levels of compensation way over what the ombudsman would determine themselves. A typical ombudsman escalation may go like this....

Customer experiences incorrect billing and it takes six phone calls and two months to resolve. At the initial complaint call centre staff may award £30.00 compensation. Customer being unhappy then makes a formal complaint to the supplier, who then increase the compensation to £50.00.

Customers know that no supplier wants an ombudsman complaint so in effect blackmail them with an ombudsman threat which means they may then have the compensation increased to £75.00 by a high level complaints team.

If the customer is then still unhappy and follows through with the threat to go to the ombudsman, the ombudsman will then request all details regarding the complaint from the supplier.

The ombudsman would then normally contact the customer to advise that they feel £75.00 is in excess of what they would usually award for the issues, but will then hold the supplier to the offer and make the supplier award £75.00.

So, in short, I usually find that the ombudsman make the supplier uphold their highest offer they've already made to the customer.

If the supplier hasn't already made an offer of compensation then you may expect an amount of between £30 - £50 for standard billing issues.

keiran

So, little point in referring to the Ombudsman ( as I thought) and even more work in so doing!

What is the point of an Ombudsman ? I'd rather the costs of this function were applied to lowered bills instead!

Why can't the powers that be see that simply stating that the Ombudsman is " an impartial and independent " service doesn't simply make it so!

Any way, one can get at least a little satisfaction from knowing that the supplier has had to pay a hefty fee for the referral ( but hope this isn't just then reflected in higher bills!!)

Will the energy cartels ever be challenged?

Was it like this before privatisation, any one? ( I have no experience of what it was like - too young!)

keiran

I got my final "verdict" from the ombudsman.

They are completed captured by the power companies.

So as general advice to others, I would say it's NOT worth complaining to the energy ombuds, except for the fact that the power company would have to pay a referral fee.

So keep the complaint short and simple, and don't spend much time/effort on it

As an informed and assertive customer, I simply do not know what is the point of this expensive "service", except perhaps to act as a "mirage" that the customer has somewhere to go with their complaints....

chanz4

keiran wrote: »

I got my final "verdict" from the ombudsman.

They are completed captured by the power companies.

So as general advice to others, I would say it's NOT worth complaining to the energy ombuds, except for the fact that the power company would have to pay a referral fee.

So keep the complaint short and simple, and don't spend much time/effort on it

As an informed and assertive customer, I simply do not know what is the point of this expensive "service", except perhaps to act as a "mirage" that the customer has somewhere to go with their complaints....

Suppliers dont loose money, they just reclaim via tariffs

OhReally_2

keiran wrote: »

I got my final "verdict" from the ombudsman...

What was their final response to your complaint?

And more importantly, as enquired in your OP, how much compo did the eventually offer you, especially for "time/inconvenience/hassle elements"?

:cool:

Buzby

In my case - where the Ombidsman didn't do anything useful, I raised a Small Claims Action against Scottish Gas. I wasn't particularly chasing compensation, as I was fed up with them ignoring correspondence, and also sending me stock letters from people who didn't actually exist. I additionally got my MP to write to them too.

A seemingly independent 'Solicitors Letter' representing SG turned out to be from them also - and the solicitor was not disclosing they were an employee of SG, so I had fun with that too. (a complain to the Law Society of Scotland for misrepresentation). In the end they waived my outstanding bill (which wasn't in dispute) and a switched to EDF instread. In total, I got my court costs plus £300 for writing off the bill.

Terrylw1

It was £350 for an ombudsman complaint to my knowledge.

Got to agree though, they seem supplier biased and I wonder whether the poor decisions are inexperience or tactics.

In terms of why they exist, that sits with Ofgem. Prior to the EO, all complaints went to Ofgem and they instructed the industry to set the OE up. Why? To deflect their work away and distance themselves from issues they would see & have to act on.

snowcat53

Have to agree the EO is a waste of space. I did get awarded £75 by them after a battle in which they twice refused to take a complaint on, but finally agreed it was in their remit.

We have a confusing plethora of expensive bodies passing the buck around, but none will properly fight the consumer's corner.or hold the energy companies to account for failure to abide by their conditions. Shameful,