Customers will receive automatic payments of £30 from suppliers if they experience delays or mistakes when switching energy companies.
The new compensation requirement will come into effect on 1st May 2020 and applies if switching takes longer than 15 working days, if customers are switched by mistake or if their final bill doesn’t arrive within six weeks.
Ofgem introduced the initial compensation payments last year, when suppliers had to pay out if they failed to meet minimum standards around spotting and correcting mistaken switches or refunding credit balances to customers.
Since then, more than 700,000 customers have received compensation, out of which 27% were for mistaken switches and 73% for late credit balance refunds.
Mary Starks, Executive Director for Consumers and Markets at Ofgem, 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. Going forward, we will continue working with suppliers and consumer groups to deliver our programme for faster and more reliable switching and ensure these arrangements are fit for the future.”
Energy and Clean Growth Kwasi Kwarteng added these “tough” new standards will ensure switching is as smooth as possible and customers are always protected.