Ofgem
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Ofgem proposes tougher rules for suppliers to make switching more reliable for consumers
Ofgem has today published the detailed rules which will complete the next important step of a programme to make switching energy suppliers faster and more reliable. Our State of the Market Assessment found that switching can be a hassle for some customers and can deter them from engaging in the market
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 legal wording for these changes has been published today for final consultation. We want these rules to be in force by August 2014. Once in place, Ofgem can investigate and potentially fine companies that do not keep to these rules.
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Notes to Editors
In December 2013, Ofgem set out a road map to reform the switching process.
- Phase 1 of the road map was to secure a reliable three week switch for consumers now. The changes described above are part of this work
- For Phase 2, we are continuing to support industry’s work to halve switching timescales and are challenging them to do this as quickly as possible
- Phase 3 looks at longer term reforms. In May we will consult on proposals that would deliver reliable and faster (potentially next day) switching for consumers
Current rules rely on customers to take action against their new supplier if they do not meet the three week switching requirements. However, to better protect consumers Ofgem is proposing that energy supplies’ licences are strengthened to allow the regulator to take enforcement action against suppliers that are not meeting this standard.
A cooling off period allows a customer to change their mind after entering into a contract with a new supplier. New regulations, that come into force in June 2014, provide a statutory 14 day cooling period for domestic consumers.
The statutory consultation on licence modifications to enforce three week switching and prevent erroneous transfers is available on our website.
For further press information
contact:
Chris Lock: 020 7 901 7225
Howard Rhoades: 020 3263 9629
Out of hours media contact number: 07766 511470
