Specifically speaking, this new scheme applies to United Kingdom broadband and landline customers who experience slow repairs, missed appointments and delayed installations, as a result they will now be automatically credited on their account.
Britain's broadband firms will automatically compensate customers for fix delays, missed appointments and problems starting a new service. If a phone or broadband connection goes down, and isn't "fully" fixed within two working days, for each subsequent day that the connection isn't functional, the customer will get £8. They will also get £25 for an engineer missing an appointment or cancelling with less than 24 hours' notice, and £5 for each calendar day after the day on which a customer was promised the provider would start a new service.
Major providers including BT, Sky, TalkTalk, Virgin Media and Zen Internet, which account for roughly 90 per cent of the landline and broadband customers in the United Kingdom, have committed to the compensation policy which will see £8 handed back for each calendar day the service is not repaired, £25 compensated for a missed engineer appointment and £5 returned for each day a new service is delayed. Providers have a while to get to grips with what's expected of them, though.
Ofcom has agreed proposals with four major providers to bring in an automatic compensation scheme for when home broadband goes wrong.
Due to the complexities of launching the first ever automatic compensation system significant changes to providers' billing systems, online accounts and call centres will need to take place, therefore Ofcom has put in place a15-month implementation period before it comes into effect to ensure a smooth introduction.
Lindsey Fussell, Consumer Group Director at Ofcom, commented: "Waiting too long for your landline or broadband to be fixed is frustrating enough, without having to fight for compensation".
And compensation will also be provided for delays when setting up a new phone or broadband connection.
"So providers will have to pay money back automatically, whenever repairs or installations dont happen on time, or an engineer doesnt turn up".
The automatic compensation scheme is set to come into force in 2019. Gillian Guy, chief executive of the organisation, said Citizens Advice will be "looking closely" at Ofcom's full review of the scheme after 12 months to ensure it works for consumers.