LAUNCH OF THE NEW ENERGY SUPPLY OMBUDSMAN

30th June 2006

Today, the Energy Retail Association and the Ombudsman Service Ltd announce the launch of a new independent service set up to resolve disputes between consumers and their electricity and gas suppliers. The Energy Supply Ombudsman will have the power to resolve all customer issues related to household bills and switching energy supplier.
 
Duncan Sedgwick, Chief Executive of the Energy Retail Association, says "This is a landmark initiative for customers. We have established a body that is truly independent of industry, regulators and consumer groups, that will have the power to resolve individual customer disputes fairly, transparently and efficiently". All the major energy suppliers in Great Britain are signed up to the new Energy Supply Ombudsman service which will be effective from 1 July 2006.
 
Peter Holland CBE DL, Chairman of the Council of the Ombudsman Service Ltd says: "We were delighted when we were asked to run this new service, which will build on the experience gained in the communications sector. I am confident that the reputation that the Ombudsman, Elizabeth France, has established for Otelo will be quickly matched by the Energy Supply Ombudsman service."
 
Elizabeth France CBE has been appointed by the Council as the Energy Supply Ombudsman. She is also the Telecommunications Ombudsman.  As she and her staff prepare to embrace this new, distinct role, she says: "We are looking forward to providing a first class service of dispute resolution to our member companies and their customers."
 
The Energy Supply Ombudsman will be a free service available to all households who have their electricity or gas supplied by one of the member companies. Customers will need to try and resolve their complaint with their supplier before turning to the Ombudsman. If this cannot be achieved then the Ombudsman will be available to resolve the dispute - usually making proposals for resolution within six weeks. Her decision is binding on the supplier.
 
Malcolm Wicks MP says "The competitive energy market has delivered enormous benefits to customers.  And the more we improve company performance, the more the market can deliver.  The industry is right to be acting to improve billing standards and to ensure that, where problems occur, customers get better, faster redress.  The ombudsman scheme the industry has devised sits well with the Government's own recent proposals for dealing with customer problems in regulated markets."
 
Teresa Perchard, Director of Policy, Citizens Advice, says "We welcome the launch of the independent Energy Supply Ombudsman.  For too long consumers who have been unable to resolve complaints directly with their fuel supplier have had nowhere to turn in order to bring matters to a satisfactory conclusion.  The Energy Supply Ombudsman aims to fill this gap, and to provide a strong incentive for fuel suppliers to improve their customer complaint handling practices."
 
 

Notes to editors:
 
1. The "Code of Practice for Accurate Bills" is also published on 3rd
July 2006 and the Energy Supply Ombudsman will use this as one of its tools for assessing disputes. This Code of Practice has been developed by the Energy Retail Association over the last eighteen months and copies can found at www.energy-retail.org.uk
 
2. The Energy Retail Association was established in October 2003 and represents all of Britain's major household energy suppliers (British Gas, EDF Energy, Powergen, RWE npower, Scottish Power, Scottish and Southern Electric). The Energy Retail Association was set up at the instigation of the energy supply industry in order to identify areas where the industry can work together for the common good without competitive advantage. For more information see www.energy-retail.org.uk
 
3. The Energy Supply Ombudsman is a non profit making body funded by its members. For more information see www.energy-ombudsman.org.uk
 
4. Ombudsmen are an independent and impartial means of resolving certain disputes outside the courts. They cover various public and private bodies and look into matters after a complaint has been made to the relevant body. The term 'Ombudsman' should only be used if four key criteria are met. These criteria are independence of the Ombudsman from those whom the Ombudsman has the power to investigate; effectiveness; fairness and public accountability.
 
5. The member companies are British Gas, EDF Energy, npower, Powergen, Scottish Power and Scottish and Southern Energy.
 
 
For further information please contact:
• Nicola Bowles, Energy Retail Association, Media and Communications Manager, on 0207 930 9181 or 07730 898 641
• Andrew Bradley, Energy Supply Ombudsman, Communications Manager, on 01925 430880 or 07904 548 941

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