Millions of energy customers could be in for a pleasant surprise, thanks to a major change in energy rules. Energy regulator Ofgem is stepping in to speed up the time it takes for households to switch suppliers, which means you could be owed cash if things go wrong.
Faster Switching for Energy Customers
Under the new rules, energy companies will be required to expedite the process of transferring households when they switch suppliers. This change aims to reduce the waiting time for billpayers and ensure prompt compensation if transfers take longer than five working days.
Previously, suppliers had to pay households £30 if the waiting period exceeded 15 working days. However, starting from April, Ofgem will reduce this waiting period to just five working days.
It’s important to note that this change applies only to households and individuals who run their businesses from home and are on domestic energy tariffs. Ofgem will update the Supplier Guaranteed Standards of Performance regulations to reflect this new change, and suppliers must comply with these rules from April 1, 2024.
Empowering Customers to Take Control of Their Energy Bills
Melissa Giordano, deputy director for retail systems and processes at Ofgem, emphasizes the significance of this change, stating, “Customers who see better energy deals on the market or experience poor service must be able to vote with their feet and move energy supplier – quickly.”
By slashing the customer switching time to just five working days, Ofgem aims to empower customers to take control of their energy bills. The regulator goes even further by requiring any supplier that misses the deadline to compensate the affected customer with £30.
This move has already been welcomed by leading charities and is expected to further increase switching levels, giving customers more freedom to choose better energy deals and ensuring quick and efficient transfers.
Positive Feedback and Previous Actions by Ofgem
This major change in energy rules follows a consultation that began in September and received “positive” feedback. It is a proactive step taken by Ofgem after the regulator took action against three energy suppliers—Octopus, E.On Next, and Good Energy—for failing to provide compensation to customers waiting more than 30 days to receive a final bill from their previous supplier after switching.
Additionally, earlier this year, EDF, Octopus, and Scottish Power were temporarily banned from forcibly fitting prepayment meters (PPMs) due to a scandal. However, after meeting specific conditions set by Ofgem, these companies were permitted to resume the installations under monitoring and certain welfare visit conditions.
What to Do If You’re Struggling to Pay for Energy
If you find yourself struggling to pay for your energy bills, there are several measures you can take. First, approach your supplier and inquire about a repayment plan before being put on a prepayment meter. This plan allows you to pay off what you owe in installments over a predetermined period.
If the repayment plan offered by your supplier seems unaffordable, don’t hesitate to negotiate for a better deal. You can also explore grants provided by various suppliers, such as British Gas, Scottish Power, Ovo Energy, E.On, EDF, Octopus Energy, and Shell Energy, to support customers who are struggling to pay their energy bills.
Moreover, consider signing up for the Priority Services Register (PSR) if you’re eligible. This service offers extra help and protections, such as advance warnings of blackouts, free gas safety checks, and additional support for vulnerable households, including the elderly, those with long-term health conditions, or households with young children. Visit Ofgem’s website for full details on eligibility.
Take control of your energy bills and explore the available options to ensure a smooth and affordable energy experience.
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