Switching service to improve with customer compensation payments

From the 1st May, customers will receive £30 compensation if they experience any delays or mistakes when switching energy suppliers.

Switching service to improve with customer compensation payments

Starting from the 1st May, customers will receive £30 compensation if they experience any delays or mistakes when switching energy suppliers, thanks to new requirements from Ofgem.

The new compensation protection requirement from Ofgem has been established with the aim to enhance people’s confidence in the energy switching process.

Customers will be given a £30 automatic payment if their energy supplier is switched by mistake, if their switch takes longer than 15 working days or if their final bill doesn’t arrive within 6 weeks. If compensation were to occur upon any wrongdoings, Ofgem hope peace of mind will be instilled within potential switchers.

However, this isn’t the first time Ofgem has released compulsory compensation payments for energy suppliers. Last year, customers received a total of £700,000 from suppliers - 27% of these payments were for mistaken switches and 73% were for late credit balance refunds.

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 the first time.”

“Going forward, we will continue working with suppliers and consumer groups to deliver our programme for faster and more reliable switching and ensure these arrangements are fit for the future.”

Minister for Energy and Clean Growth, Kwasi Kwarteng, said:

“We’ve made it easier than ever for consumers to shop around and record numbers are now switching suppliers to save on their bills."

“These tough new standards will ensure switching is as smooth as possible and consumers are always protected.”

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