Ofwat seeks views on handling customer complaints against wholesalers
- by Karma Loveday
- Sep 15, 2024
- 1 min read
Ofwat is seeking views by 11 October on how to plug the gap in the existing complaints framework for business customers arising from the fact that wholesalers are not obliged to have alternative dispute resolution (ADR) processes in place. These are means of independent adjudication that customers can call upon if they are dissatisfied with the initial outcome or handling of their complaint. Retailers are required to provide for ADR under the Customer Protection Code of Practice, but wholesalers are not.
Ofwat has proposed that the Consumer Council for Water (CCW) changes the terms of its ADR scheme so this can adjudicate on matters involving a wholesaler. The regulator said it would then set out its expectation that wholesalers participate in this scheme.
While there would be no formal regulatory obligation on wholesalers to do so, Ofwat said it would consider introducing further legal obligations, including making a modification to wholesalers' licence conditions, if that proved necessary.
Elsewhere, the Call for Inputs sought views on practical implementation issues, including the apportionment of case fees and the handling of complex cases involving multiple trading parties. It also set out possible barriers to implementation including challenges to re-designing CCW's scheme.
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