Ofgem has announced that from 1st May 2020 energy customers will automatically receive £30 compensation if they experience problems whilst switching suppliers. This new scheme follows on from a successful scheme introduced by Ofgem in 2019 where suppliers were expected to meet 'minimum standards' and has already seen over £700,000 paid out to customers.
How can I get compensation?
Customers will now be paid compensation if they experience any of the following problems whilst switching:
- The customer was switched suppliers by mistake
- The switch takes more than 15 working days
- The final bill isn't received within 6 weeks
From 1st May 2020 if a switch takes more than 15 working days to complete or the customer is switched suppliers by mistake, a compensation payment will be due from the new energy supplier. If the final bill is not received from the energy supplier the customer is switching from within 6 weeks, the supplier must pay the compensation to the customer.
The new rules have been introduced following on from the successful introduction of a compensation scheme in 2019 that demanded that minimum standards were met. Ofgem ensured that energy suppliers were paying out for errors made when switching and not refunding customers who were in credit on their account. From the £700,000 received by customers, almost three-quarters of payments were for late credit balance refunds and the remaining quarter were for mistaken switches.
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.
How to switch energy supplier
If you have been thinking about switching energy supplier but haven't got round to it or don't want the hassle, switching is now easier than ever. You can sign up to an energy auto-switching service where the hard work is done for you and you can ensure you are always getting the best deal.
Check out our article: 'Compare the best energy auto-switching services in the UK'.
If you don't want to use an automatic energy switching supplier but still want to get the best deal, you may find this article useful: 'How to find the best energy deal, switch & cashback in 17mins 39secs – a walkthrough'.
