20th Feb 2020
New rules introduced by the energy regulator Ofgem will require suppliers to automatically compensate customers who are faced with delays or errors when switching provider.
If switches between gas and electricity suppliers take more than 15 working days, customers will be paid £30 automatically, while they will receive the same amount if they are switched by mistake, or if their closing bill does not arrive within six weeks.
The new rules – which will come into force on 1 May – have been introduced to protect consumers and put pressure on firms to ensure they are performing to expectations.
Mary Starks, Executive Director for Consumers and Markets at Ofgem, said: “More customers are switching than ever, with a record 6.4 million changing supplier in 2019. But we also know that a minority can still experience problems when they switch.
“As part of our commitment to protecting consumers and enabling competition, we are introducing these new standards to give customers further peace of mind, and to challenge suppliers to get it right first time.”
The new rules come in the wake of the 2019 Ofgem regulation, which stipulated that customers should be compensated in cases where suppliers had failed to meet minimum standards around spotting or correcting mistaken account switches or refunding credit balances. To date, customers have been compensated to the tune of £700,000.