Households in the UK could soon benefit from more robust consumer protection measures as energy regulator Ofgem explores proposals to enforce compensation payments for delayed supplier switches.
Under the proposed changes, energy suppliers failing to complete customer switches within five working days would be required to provide compensation.
Under the new regulations, energy suppliers are obligated to ensure that customer switches are completed within five working days of the “relevant date.”
This date is defined as the day when a customer: (1) enters into a contract with a new supplier, (2) provides the supplier or its representative with sufficient information to facilitate the switch and (3) reasonably expects the switch to occur without any further action on their part.
This updated license requirement replaces the previous requirement, which mandated that suppliers complete switches within 21 “calendar” days.
These potential changes aim to ensure a smoother and more efficient experience for consumers when switching energy suppliers.
This initiative seeks to align the compensation terms with supplier licence conditions and address inconsistencies arising from the introduction of faster switching arrangements in July 2022.
