Statement: Automatic compensation

Published: 24 March 2017
Consultation closes: 6 June 2017
Status: Closed (statement published)

In this statement, we set out our conclusion that there is a need for an automatic compensation scheme to protect residential consumers who suffer from certain service quality failures with their landline and/or broadband services. It should apply where they experience delayed repairs following loss of service, delayed installations and missed appointments.

We also set out our decision about the way the scheme should be implemented in order to meet this need.

Finally, we conclude on the introduction of a new General Condition on transparency and information requirements to help small and medium sized businesses customers (SMEs). This will ensure that when choosing services (and later if they experience service quality failures), SMEs have better information, in a clear and accessible format, about what level of service quality to expect.

Our decision is part of a programme of measures to deliver significantly better service quality, which we said we would introduce in our Strategic Review of Digital Communications last year.

Update: 1 April 2021

We have today published revisions to the Voluntary Code of Practice for an automatic compensation scheme. The Code of Practice has been amended to specify that going forward the compensation amounts listed will increase annually in line with inflation. We have also added an additional example to paragraph 40a to provide greater clarity on when this exception to obligations to pay compensation may apply.


Back to top