SAY WATT
Major change to energy rules for millions of customers that mean you could be owed cash if things go wrong
It comes following a consultation last year
MILLIONS of energy customers could be owed cash thanks to a major change to rules.
From April 1, energy regulator Ofgem will force energy companies to speed up the time they take to move households over if they switch suppliers - or pay compensation.
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The new rules mean billpayers will receive compensation if they are left waiting to transfer for more than five working days.
Currently, suppliers have to pay households £30 if they're left waiting more than 15 working days to switch.
From April, Ofgem will reduce this to five working days.
The change is only for households or people who run their business from home and are on a domestic energy tariff.
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The supplier Guaranteed Standards of Performance regulations 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 must be able to vote with their feet and move energy supplier - quickly.
"As a regulator, we have already slashed the amount of time within which suppliers must switch a customer by two-thirds to just five working days. We are now going further by requiring any supplier who misses that deadline to pay the affected customer £30."
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Ofgem said there is an increase in people switching suppliers from last year.
It added that the change to rules will empower 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 relative to October 2023, and are nearly three times as high as the level observed in November 2022."
It also said switching rates continue to increase month on month.
It comes after a consultation, which began in September, which Ofgem said received "positive" feedback.
This followed Ofgem taking action against three energy suppliers who failed to provide compensation for 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 either missed or unduly delayed the compensation payments, which are due if a supplier does not provide a final bill within six weeks when a customer switches to another provider.
It isn't just energy firms which will offer you compensation if they take too long to switch you over.
Telecoms regulator Ofcom has its own compensation scheme that sees broadband and landline customers get money back from their provider when things go wrong, without having to ask for it.
If a provider promises to start a new service on a particular date, but fails to do so customers will receive £5.83 for each calendar day of delay, including the missed start date.
Elsewhere, earlier this year EDF, Octopus and Scottish Power were permitted to return to forcibly fitting prepayment meters (PPMs) after they were temporarily banned following a scandal around the practice.
Ofgem said the three firms had met its set of conditions, which include conducting internal audits to identify PPMs wrongfully installed before the February 2023.
Once suppliers meet the conditions 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 still have to make at least 10 attempts to contact a customer before a prepayment meter is installed and conduct a site welfare visit before proceeding.
However, these firms are not allowed to forcibly fit a PPM if the household is considered to include "highest risk" customers.
It comes a year after a Times investigation which revealed that British Gas sent Arvato debt collection agents to "break into" people's homes and "force-fit" PPMs.
What to do if something goes wrong with your bill
If you pay your energy bill by direct debit, then it is assumed that this monthly amount should be "fair and reasonable".
If you don't think it is, you should complain directly to your supplier in the first instance.
If you're not happy with the outcome you can take it to the independent to dispute, but there are a few steps before you get to that stage.
Your supplier must clearly explain why it's chosen that amount for your direct debit.
If you've got credit on your account, you have every right to get it back - although some experts recommend keeping it there through the summer, so your bills don't go up in the winter when you use more energy.
Your supplier must refund you or explain exactly why not otherwise and the regulator, Ofgem, can fine suppliers if they don't.
To ask for a refund call your supplier or contact them online.
If you are disputing a bill, taking a meter reading is a must.
If it's lower than your estimate, you can ask your provider to lower your monthly direct debit to a more suitable amount.
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But beware so you don’t end up in debt later on with a bigger catch-up bill at the end of the year from underpayments racking up.
If you don't have success in negotiating a lower payment then you can put in a complaint to the Energy Ombudsman.
Do you have a money problem that needs sorting? Get in touch by emailing [email protected].
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