Major change in energy rules for millions of customers and you could be owed cash
MILLIONS of energy customers could be owed cash thanks to a major rule change.
From April 1, energy regulator Ofgem will force energy companies to speed up the time it takes them to switch households when they switch suppliers – or pay compensation.
The new rules mean that bill payers will receive compensation if they wait longer than five working days for the transfer.
Currently, suppliers have to pay households £30 if they have to wait more than fifteen working days to switch.
From April, Ofgem will reduce this to five working days.
The change only applies to households or people who run their business from home and apply a domestic energy rate.
The Guaranteed Performance Standards Regulations for Suppliers will be updated to reflect the new change.
Ofgem says suppliers will be forced to follow these new rules from April 1, 2024.
Melissa Giordano, deputy director for retail systems and processes at Ofgem, said: “Customers who see better energy deals on the market or experience poor service should be able to vote with their feet and switch energy suppliers quickly.
“As a regulator, we have already reduced the time within which suppliers have to change a customer by two-thirds to just five working days. We are now going even further by requiring any supplier who misses this deadline to pay the affected customer £30. .”
Ofgem said there has been an increase in the number of people switching suppliers compared to last year.
It added that the rule change will allow customers to “take control of their energy bills, this winter and beyond”.
A spokesperson said: “The latest switching figures we have from the end of 2023 show a 9.3% increase on October 2023, and are almost three times higher than November 2022 levels.”
It also said switching rates continue to increase month over month.
It comes after a consultation that began in September, which Ofgem said received “positive” feedback.
This followed Ofgem taking action against three energy suppliers for failing to offer compensation to customers who waited more than 30 days to receive a final bill from their old supplier when they switched to another company.
Octopus, E.On Next and Good Energy have missed or unnecessarily delayed compensation payments, which are due if a supplier does not submit a final invoice within six weeks when a customer switches to another supplier.
It's not just energy companies that offer you compensation if it takes too long for you to be switched.
Telecoms regulator Ofcom has its own compensation scheme where broadband and fixedline customers get money back from their provider if something goes wrong, without having to ask for it.
If a provider promises to start a new service on a certain date but fails to do so, customers will receive €5.83 for each calendar day of delay, including the missed start date.
Elsewhere, EDF, Octopus and Scottish Power were allowed to return to forcibly installing prepayment meters (PPMs) earlier this year after being temporarily banned following a scandal surrounding the practice.
Ofgem said the three companies had met the conditions, which included carrying out internal audits to identify PPMs wrongly installed before February 2023.
Once suppliers comply and restart “involuntary” PPM installations, they must also provide regular monitoring data to Ofgem to identify any concerning practices.
EDF, Octopus and Scottish Power will have to make at least ten more attempts to contact a customer before a prepayment meter is installed and carry out an on-site welfare visit before they can proceed.
However, these businesses should not forcibly implement a PPM if the household is considered the “highest risk” customers.
It comes a year after a Times investigation found British Gas sent Arvato debt collectors to break into people's homes and force PPMs.
What should you do if something goes wrong with your invoice?
When you pay your energy bill via direct debit, it is assumed that this monthly amount must be 'fair and reasonable'.
If you believe this is not the case, you should complain directly to your supplier in the first instance.
If you are not satisfied with the outcome, you can take this to the independent Energy Ombudsman dispute, but there are a few steps before you reach that stage.
Your supplier must clearly explain why he has chosen that amount for your direct debit.
If you have credit in your account, you have every right to get it back – although some experts advise keeping it that way over the summer so that your bills don't increase in winter as you use more energy.
Your supplier must pay you back or explain exactly why otherwise, and the regulator, Ofgem, can fine suppliers if they don't.
To request a refund, please contact your supplier or contact them online.
If you dispute a bill, taking the meter reading is a must.
If it is lower than your estimate, you can ask your provider to reduce your monthly payment to a more appropriate amount.
But be careful not to end up in debt later with a larger catch-up bill at the end of the year as the underpayments pile up.
If you are unable to negotiate a lower compensation, you can file a complaint with the Energy Ombudsman.
Do you have a money problem that needs to be solved? Get in touch by emailing money@the-sun.co.uk.
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