Detailed rules to help make switching energy companies “faster and more reliable” for consumers have been published for final consultation.
Current rules rely on customers to take action against their new supplier if they do not meet the three-week switching requirements. However, Ofgem is proposing that energy supplies’ licences are strengthened to allow the regulator to take action against companies that are not meeting the standard.
The proposals come as Ofgem’s State of the Market Assessment found that switching “can be a hassle for customers and deter them from engaging in the market”.
It said: “Ofgem wants energy suppliers to face new rules set by us to ensure that cases where customers are switched by mistake are stamped out. Ofgem also intends to strengthen licence conditions for suppliers to switch customers within three weeks, after any cooling off period.”
The regulator added it expects the rules to come in to force by August this year which once in place will allow it to investigate and potentially fine energy companies if they don’t keep to the regulations.