Energy firms will have to pay £30 compensation for switching mistakes
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ENERGY companies that switch you accidentally will have to pay you £30 in compensation from May this year.
Firms will also need to provide automatic compensation if your final bill takes more than six weeks to arrive.
The new rules are being introduced by energy watchdog Ofgem.
They are the latest in a series of compensation changes designed to penalise suppliers who make switching mistakes.
The last raft of regulation came in on May 1, 2019, and introduced lots of other £30 compensation payments for different errors.
For instance, it introduced penalties for suppliers failing to alert a customer who has been switched accidentally or agree on a mistaken switch within 20 days.
The rules also added a fine for anyone who was accidentally switched where switching back to the original supplier took more than 21 days.
All of the compensations are automatic, and if your insurer doesn't pay you what you're entitled to within ten days of a breach occurring, you get another £30 for the delay.
If lots of mistakes are made and the company failed to pay up on time for each one, you could end up being paid hundreds of pounds.
Exceptions to the automatic compensation rules
THERE are still some ways firms could wriggle out of paying you:
- If the supplier disputes that it owes you compensation: If a firm is arguing that it doesn't owe you money, you could take your case to the , which would decide.
- If you don't want to take action: If you're happy with your new supplier and want to stay, even if it was a mistake, you won't receive compensation.
- If there's no strong case: The supplier could dismiss a complaint if there's no evidence.
- If there's been a crime: If a customer has stolen gas or electricity, then they won't receive compensation.
Since the regulations were introduced last year, customers have already received £700,000 in payments.
Of these payments, 27 per cent have been for mistaken switches, while 73 per cent have been for late credit balance refunds.
How compensation is paid is up to your supplier. For instance, it could be a bank transfer, or the firm could send a cheque in the post or refund you the money.
Dame Gillian Guy, chief executive of Citizens Advice, said: “These new protections should give more people the confidence to shop around and find the best deals.
“Households can still save hundreds of pounds by switching and shouldn’t be put through the hassle and stress of having to claim compensation when energy suppliers make mistakes.”
Victoria Arrington at energyhelpline.co.uk said: “This is a bold and brilliant move for Ofgem – and sends a clear ringing message to suppliers that missteps could cost them, big time.
"£30 may not sound like much, but since these rare mistakes have in the past been known to affect thousands of customers, it could add up to a hefty disincentive, with fines going well into the millions.
"It’s a shape up or ship out type of situation – either suppliers need to take care to look after customers properly, or they will have to be prepared to pay out."
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