Does The Energy Ombudsman Actually Have any Powers?

Legacy_user

I have just had an update from the The EO about an ongoing complaint that I have against a supplier. Nine weeks on since I first complained to The EO, he now tells me that the supplier has declined to respond to its request for information so a decision will be made based on my complaint.

Given that the supplier has failed to respond to a request from the ADR organisation that it is signed up to, I asked about The EO's enforcement powers? No response was forthcoming. I have asked the question again in writing.

As far as I can tell, the supplier has 28 days to comply with any decision. It is then 'fined' a £100 and given another 28 days followed by rinse and repeat. At this point, what happens next goes cold other than I note that the EO is supposed to tell Ofgem.

I am not sure where this leaves the consumer.

EachPenny

Hengus wrote: »

I am not sure where this leaves the consumer.

There's a MSE started thread and survey here about the fact they are researching ombudsmen in order to produce a report for a Parliamentary group looking at consumer protection.

https://forums.moneysavingexpert.com/discussion/5629501

I've added my own experience but I'm not sure how actively MSE are looking at the thread as there doesn't seem to be much response. You might want to add your thoughts there too.

icharus

Hengus wrote: »

I have just had an update from the The EO about an ongoing complaint that I have against a supplier. Nine weeks on since I first complained to The EO, he now tells me that the supplier has declined to respond to its request for information so a decision will be made based on my complaint.

Given that the supplier has failed to respond to a request from the ADR organisation that it is signed up to, I asked about The EO's enforcement powers? No response was forthcoming. I have asked the question again in writing.

As far as I can tell, the supplier has 28 days to comply with any decision. It is then 'fined' a £100 and given another 28 days followed by rinse and repeat. At this point, what happens next goes cold other than I note that the EO is supposed to tell Ofgem.

I am not sure where this leaves the consumer.

Media involvement is probably necessary!

System

The EO eventually responded with this link:

https://www.ombudsman-services.org/docs/default-source/website-content/energy-remedy-implementation-policy.pdf?sfvrsn=2

It looks like a very long and tortuous process if a supplier just decides to ignore the ADR process that it is signed up to.

youravinalarrrf

Hengus wrote: »

The EO eventually responded with this link:

https://www.ombudsman-services.org/docs/default-source/website-content/energy-remedy-implementation-policy.pdf?sfvrsn=2

It looks like a very long and tortuous process if a supplier just decides to ignore the ADR process that it is signed up to.

It looks like a pretty toothless policy to me with ridiculously small financial penalties for the energy supplier involved. Worst case scenario the energy supplier gets reported to Ofgem, expelled from being a member of the Ombudsman Services and the customer still ends up with no resolution to the complaint and still out of pocket.

Customers might as well cut out the middleman and commence court proceedings against the energy supplier involved straight away. However given the amount of money involved it's probably not worth doing but it's the principle of it that's important.

Given that we are talking specifically about Iresa here the chances are that Iresa would just ignore the courts any way in exactly the same way as they are currently ignoring their customers, other suppliers, Ofgem and the Energy Ombudsman. :mad:

System

I found this snippet in a SohnAssociates Report into the EOS (c.2010):

Quote: The costs of the Energy Ombudsman Service (EOS) are met by Members through membership and case fees. In 2009/10 the case fee was set at £334 per case considered whilst annual membership fees were £61,000 for each of the large energy suppliers, £16,500 in total for network companies and £150 per company for small suppliers. Unquote

You would have thought that new suppliers with limited cash flow would want to do their utmost to avoid the EOS case fee. I assume that the cost per case today must be higher.

footyguy

Here is a link to the energy ombudsman's website, in particular how they can assist
https://www.ombudsman-services.org/sectors/energy/resolutions

Within that link, there is a link to their remedy implementation policy

In an extreme case, it would be down to the customer to take action oin the law courts, afterall it is only the law courts that can penalise anyone.
The Ombudsman service will support the customer (not financially) in this, should the customer wish to pursue such route.
I would suggest, except in very unusual circumstances, the court will accept the ruling of the ombudsman, and if that is not enforcible by the court, the court will impose an alternative penalty.

imo, it would be very unusual for a company not to accept the rulings of the ombudsman service in the first place (unless they trully believed they were wrong morally and legally, but remember the ombudsman usually come to the resolution in conjunction with the supplier in the first place, so it reallly would be unusual)

Willful failure to accept the rulings of the OS may result in the company being expelled from the scheme.

System

footyguy wrote: »

....... but remember the ombudsman usually come to the resolution in conjunction with the supplier in the first place, so it reallly would be unusual)

Sadly, The EO's Report can be read in two different ways: one, that the supplier didn't respond to me or, two, the supplier didn't respond to The EO. I believe that it is the latter in the context of the Report but the former is also true.