Energy customers to get an automatic £30 if switching energy suppliers goes wrong
Energy suppliers will get a “wake up call” for mistakes made during the switching process.
Suppliers will soon be required to automatically compensate customers if their switch goes wrong, under Ofgem proposals announced today.
Customers will receive at least £30 in compensation for each switching problem they experience.
Ofgem said the compensation would “serve as a wake up call for suppliers” to reduce the number of problems and boost consumers’ confidence in switching.
“The new rules would give piece of mind to consumers that they will be compensated if something goes wrong when they switch,” an Ofgem statement said.
Problems include; being mistakenly switched to another supplier, switches taking longer than 21 days to complete, delays in sending final bills or refunding credit to customers who are leaving.
According to Ofgem’s research, many people are put off from switching because of worries something may go wrong, especially if they have experienced a problem before.
Which is a scary because they could be getting ripped off by £350 a year!
That's the difference between the cheapest deal on the market and a standard tariff from The Big Six.
Automatic compensation for problems should be in place by the end of this year.
Energy switching overhaul
The vast majority of switches go smoothly, but problems do occur.
Last year, 5.1 million electricity consumers and 4.1 million gas consumers switched supplier, the highest number for almost a decade.
Ofgem is planning to make it easier than ever to switch.
In February, Ofgem gave the green light to a programme to overhaul industry systems by 2020 to allow people to switch by the next working day.
Rob Salter-Church, interim executive director of consumers and markets at Ofgem, said: “While the vast majority of switches go smoothly, too many problems are still occurring. These can cause inconvenience, and in some cases, real worry and stress for those affected.
“Today’s proposals for automatic compensation will strengthen protection for consumers who switch, and should serve as an incentive for suppliers to get switches right first time.”
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