Ofcom moots automatic compensation for shoddy broadband service

UK broadband providers could be forced to shell out nearly £200 million a year in compensation for slow repairs and missed appointments.

The new proposals by telecoms watchdog Ofcom would allow landline and broadband customers to automatically receive money back from their provider without having to ask or go through a claims process.

The regulator estimated that customers could receive up to £185 million in compensation each year if their landline or broadband was not fixed quickly enough, had failed to work on the day it had been promised, or an engineer failed to turn up at a scheduled appointment time.

Lindsey Fussell, Ofcom's consumer group director, said in a statement, "When a customer's landline or broadband goes wrong, that is frustrating enough without having to fight tooth and nail to get fair compensation from the provider."

"So we're proposing new rules to force providers to pay money back to customers automatically, whenever repairs or installations don't happen on time, or when people wait in for an engineer who doesn't turn up. This would mean customers are properly compensated, while providers will want to work harder to improve their service."

The compensation payments would be set by Ofcom, and would "reflect the degree of harm suffered by the consumers".

Customers would either receive a cash payment or a credit on their bill, with the level of payments set by Ofcom.

The regulator has proposed the scale of charges as follows:

• Customers would receive £10 for each calendar day that the service was not repaired
• £30 for any time that an engineer failed to turn up for a scheduled appointment, or that it was cancelled with less than 24 hours' notice
• £6 for each calendar day of delay at the start of a new service, which included the missed start date.

Ofcom said the proposals would be open for consultation until 5 June and it would then publish its decision "around the end of the year."