£30 compensation scheme for energy switching mistakes extended

£30 compensation scheme for energy switching mistakes extended
By: Business Posted On: February 11, 2020 View: 17

£30 compensation scheme for energy switching mistakes extended

Energy customers who experience delays or mistakes when switching suppliers will automatically be entitled to £30 compensation from 1 May.

Regulator Ofgem said it would offer protection to gas and electricity users and boost confidence in the switching process - helping to enable competition.

The new rules will cover customers whose change to a new supplier does not complete within 15 working days or who are switched by mistake.

In those cases, the new supplier is liable to pay compensation.

Customers can also receive redress from their old supplier if it fails to issue a final bill within six weeks of a switch.

The new rules add to an automatic compensation regime first introduced last year.

That covered cases where suppliers failed to meet minimum standards around spotting and correcting mistaken switches, or refunding credit balances to customers.

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Ofgem said that since then, customers had already received more than £700,000 in compensation from suppliers.

Mary Starks, executive director for consumers and markets at the regulator, 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."

Natalie Hitchins, head of home products and services at consumer group Which?, said: "Switching remains the best way for customers to save money on energy bills, but it is not always straightforward, so it is right that the regulator is extending compensation rights."

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