THOUSANDS of energy customers could get free cash sooner thanks to new regulator rules.
Energy regulator Ofgem has shaken up the way in which energy firms must compensate customers who’ve been waiting too long to switch suppliers.
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Before April 1, suppliers only had to pay households £30 if they were left waiting more than 15 working days to switch.
However, since Monday, billpayers now receive compensation if they are left waiting to transfer for more than five working days.
The supplier Guaranteed Standards of Performance regulations will be updated to reflect the new change.
Ofgem said there is an increase in people switching suppliers from last year.
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It added that the change to rules would empower customers to “take control of their energy bills this winter and beyond”.
The rule change comes after a consultation, which began in September, in which Ofgem said it received “positive” feedback.
Melissa Giordano, deputy director for retail systems and processes at Ofgem, said: “Customers who see better energy deals on the market or experience poor service must be able to vote with their feet and move energy supplier – quickly.
“As regulator, we have already slashed the amount of time within which suppliers must switch a customer by two-thirds to just five working days.
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“We are now going further by requiring any supplier who misses that deadline to pay the affected customer £30.
“We are already seeing switching levels up from last year, and now, this new move – welcomed by leading charities – will further empower customers to take control of their energy bills this winter and beyond.”
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Your old energy supplier must also pay out if it fails to issue a final bill within six weeks of a switch.
If multiple issues occur simultaneously, you can get £30 for each of them.
So if a switch was not completed within five working days and your old supplier didn’t issue a final bill within six weeks of the switch, you’d receive £60.
Do I need to apply for compensation?
If you’re due compensation, it should be paid to you automatically. If you don’t get it, you should contact your new or original supplier immediately to let it know – it’s then up to that supplier to sort it.
If it’s not sorted, you can go to the Energy Ombudsman.
But the way in which you’ll be paid the compensation is up to your supplier.
It could be a bank transfer or credit card refund if it has your details, or it may send you a cheque.
If you have a prepayment meter, it could also add credit to that.
If you’ve not received a refund, contact your energy supplier directly.
You’ll find details of your current supplier on a recent energy bill.
Or log into your online account if you have paperless billing.
If you aren’t happy with their response – submit a complaint.
How do I make a complaint?
Similar to financial services firms, energy companies have to have a complaints procedure for customers to follow.
When you make a complaint, follow this procedure so they have the information they need to resolve the issue.
Simply explain the problem and what you want your supplier to do about it.
Check your energy supplier’s website for an explanation of how to launch a complaint.
Energy suppliers have eight weeks to respond and come to a decision.
If it doesn’t or you’re unhappy with the response, you can take the firm to the Energy Ombudsman.
The Energy Ombudsman may be able to help if you have a complaint about an energy or communications provider.
Before submitting your complaint to it, you must have logged a formal complaint with your provider and worked with the firm to resolve it.
You must also have received a so-called deadlock letter, where the provider refers your complaint to the Energy Ombudsman.
You can also complain if you haven’t had a satisfactory solution to your problem within eight weeks.
The Energy Ombudsman then bases its decision on the evidence you and the company submit.
If you choose to accept its decision, your supplier then has 28 days to comply.
The Ombudsman’s decisions are binding on the energy company.
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If your supplier refuses to follow the instruction, the Ombudsman may contact Ofgem to remedy the situation – but there’s no set period for escalating issues to the regulator and it’s not up to the customer.
If an individual chooses not to accept the Ombudsman’s final decision, they lose the right to the resolution offer.
What energy bill help is available?
THERE’S a number of different ways to get help paying your energy bills if you’re struggling to get by.
If you fall into debt, you can always approach your supplier to see if they can put you on a repayment plan before putting you on a prepayment meter.
This involves paying off what you owe in instalments over a set period.
If your supplier offers you a repayment plan you don’t think you can afford, speak to them again to see if you can negotiate a better deal.
Several energy firms have grant schemes available to customers struggling to cover their bills.
But eligibility criteria varies depending on the supplier and the amount you can get depends on your financial circumstances.
For example, British Gas or Scottish Gas customers struggling to pay their energy bills can get grants worth up to £1,500.
British Gas also offers help via its British Gas Energy Trust and Individuals Family Fund.
You don’t need to be a British Gas customer to apply for the second fund.
EDF, E.ON, Octopus Energy and Scottish Power all offer grants to struggling customers too.
Thousands of vulnerable households are missing out on extra help and protections by not signing up to the Priority Services Register (PSR).
The service helps support vulnerable households, such as those who are elderly or ill, and some of the perks include being given advance warning of blackouts, free gas safety checks and extra support if you’re struggling.
Get in touch with your energy firm to see if you can apply.
