Ofgem proposes tougher rules for suppliers to make switching more reliable for consumers
9 Apr 2014 12:51 PM
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.
-Ends-
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