With more customers switching than ever before, Ofgem has set a new compensation standard for when things go wrong in order to better protect customers.

Now, customers will automatically receive a payment 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 actually introduced the first compensation scheme last year when suppliers had to pay out if they failed to meet minimum standards, such as failing to spot and correct mistaken switches or refunding credit balances to customers, but 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.”

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