April 30, 2019
In a small amount of energy switches, customers can experience delays waiting for a refund or they can be transferred to a supplier in error. Ofgem has introduced new measures offering automatic compensation to customers effected in an attempt to encourage energy suppliers to get every energy transfer right, first time.
What Compensation is Available?
If a customer's supply is not restored to the correct supplier in a timely manner, then they will be entitled to a maximum of £120.
Customers will also be entitled to a £30 payment if their previous supplier is late in refunding them their credit balance after they have switched.
Energy suppliers must refund these credit balances within 10 working days of a final bill being issued. If they don't, then they must pay compensation to the affected customer within 10 days of the breach. If a supplier does not make the initial payment, then they are required to make a further payment of £30.
All energy suppliers will have to report data on payments to Ofgem and they will monitor their compliance to ensure that the new regulations are being followed.
Ofgem hopes that the new requirements will boost confidence in switching and give customers peace of mind that they will be compensated if something goes wrong.
Rob Salter-Church, director, retail systems transformation at Ofgem, said:
"When a switch goes wrong, it can cause inconvenience, and in some cases, real worry and stress for those affected.
Automatic compensation payments from 1 May, and additional payments this year, should serve as an incentive for suppliers to raise their game and get switches right first time.
These new requirements, together with the introduction of the price cap, and tightening the rules on new suppliers entering the market, demonstrate our commitment to protecting consumers and ensuring they get a better deal."
Later this year, Ofgem also plans to introduce new requirements for suppliers to pay automatic compensation for delayed switches and providing late final bills.
Posted on April 30, 2019 at 10:14 AM
April 18, 2019
A whopping 615,503 households switched energy supplier in March - up 29% on the same period in 2018.
This brings the total number of switches to 1,451,145 this year, up 12% when compared to the same point in 2018.
The stats released by Energy UK today shows the impact the increase of the energy price cap has had consumers. Many of whom decided to move to a cheaper energy price plan.
Lawrence Slade, Energy UK's chief executive, said:
"It's very positive to see increasing numbers of customers continuing to switch and engaging in the market to make sure they're on the best deal for them - and of course, this number doesn't include those customers who choose to move to a new tariff with their current supplier, which would add many more thousands of households.
Energylinx's offers a free and impartial energy comparison and switching service. You can find out if you can save money on your energy bills on our website or by calling one of our energy advisors on 0800 849 707. We are open Monday to Friday 09:00-18:00 and Saturday 09:00-15:00.
Posted on April 18, 2019 at 01:13 PM
April 11, 2019
Welcomed news from Ofgem today.
The regulator announced that any new companies applying for a licence to supply energy will have to undergo more rigorous tests from June 2019. This is being done to help drive up standards for customers and reduce the risk of supplier failure.
Any new companies applying for a licence will have to demonstrate they can adequately fund their operations for their first year, outline how they expect to comply with regulatory obligations and show their intentions to provide a good level of customer service.
From senior staff members to directors and major shareholders of the companies applying for a licence, will also have to show they are 'fit and proper' to hold a licence.
Why has Ofgem taken this step?
Ofgem launched a consultation into its plans to tighten checks on energy supplier in November 2018. At the time, Ofgem highlighted their concerns with poor customer service and financial instability after several energy suppliers went bust.
In the last 12 months, 10 energy suppliers have went bust leaving hundreds of thousands of households without an energy supplier.
Trade body, Energy UK, are pleased about the new requirements suppliers will have to meet before going live.
Lawrence Slade, Chief executive of Energy UK, said:
"We welcome measures from Ofgem to introduce tougher entry tests for new suppliers entering the retail market. We want to see a future retail market where competition thrives, and customers benefit from increased choice and service, and aren't left picking up the tab when suppliers with unsustainable business models fail.
Ofgem will consult on new proposals in the summer with the aim of raising standards of suppliers already operating in the energy market. This will include considering new reporting requirements for energy companies who are already active in the market and rules around how suppliers manage customer credit balances.
Posted on April 11, 2019 at 09:51 AM
April 1, 2019
Energy prices have gone up for millions of customers after the energy regulator, Ofgem, revised the level of the energy price cap.
The move will add £117 a year on to the cost of standard variable tariff for an average* customer, taking prices from £1,137 to £1,254 and came into effect today.
If you are currently on your suppliers' standard variable tariff, then your energy prices have likely gone up today. All the "Big Six" British Gas, EDF, E.ON, Npower, ScottishPower and SSE increased energy prices for their customers by more than 10%.
There was some good news for the customers of Breeze Energy, Bulb, Igloo and Outfox the Market as they have decreased their energy prices.
How to avoid the energy price hike
If you are currently on a standard variable tariff or deemed tariff with your energy supplier, then you are paying too much.
Energylinx offers a free and impartial comparison and switching. You can compare energy suppliers online or by calling 0800 849 7077 and speaking to one of our energy advisors who will be able to help you find a cheaper deal. We are open Monday to Friday 09:00 to 18:00 and on a Saturday 09:00 to 15:00.
*An average energy user uses 3,100 kWhs for electricity and 12,000 kWhs for gas - as per Ofgem averages.
Posted on April 1, 2019 at 10:16 AM