In 2005, Ofgem determined (following the energywatch billing supercomplaint) that energy suppliers should establish a scheme to resolve outstanding billing disputes in a fair and independent way.  The energy suppliers who were members of the Energy Retail Association committed to establishing an Alternative Dispute Resolution (ADR) scheme within 12 months as part of their ongoing drive towards improved customer service and the ongoing trend towards reduced complaints within the industry.  They felt that such a scheme would further strengthen existing arrangements for complaint resolution within the domestic energy sector.  The Energy Ombudsman is that scheme.

The Ombudsman Service Ltd (tOSl) administers the Energy Ombudsman and is a private limited company which operates on a not-for-profit basis.  Its governance structure has been carefully designed to protect the independence of the Ombudsman and the company has been admitted to membership of the British and Irish Ombudsman's Association (BIOA).  BIOA's rules require that members are independent.  The criteria for membership of BIOA can be viewed here.  tOSl is funded by its industry members.

The Terms of Reference for the Energy Ombudsman are available to download from this site.