Ofgem has reduced the time suppliers have to compensate customers for a slow switching experience, bringing it in line with supply licence conditions.
The energy regulator previously reduced the time suppliers have to switch a customer from 21 working days to five working days as part of the Switching Programme.
As part of the supplier Guaranteed Standards of Performance (GSoP), retailers must currently pay out £30 in compensation to customers if their requested switch is not completed within 15 working days.
Last year Ofgem proposed to amend the GSoP to shorten this time to five working days, bringing it in line with the supply licence.
In an open decision letter the regulator’s deputy director for retail systems and processes Melissa Giordano confirmed the regulator would be going ahead with the amendment.
The changes will take effect on 1 April this year.
Ofgem added that it was making the changes as it expects “even more consumers to switch providers over the coming months”.
The regulator said that the latest switching figures it has from the end of 2023 show a 9.3% increase relative to October 2023, and that they are nearly three times as high as the level observed in November 2022. Switching rates, it added, continue to increase month on month.
Commenting on the changes, Giordano 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.”
“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,” she added.
It comes as the latest results for the Energy Switch Guarantee (ESG), designed to drive higher standards around the switching process, show that British Gas rejoined the scheme just months after confirming it had quit.
The ESG is a series of commitments by retailers to hit certain standards and targets around the switching process, such as ensuring switches are completed within five working days or less.
In the latest results, which are for Q3 2023, Outfox the Market is revealed to be the only retailer which failed to hit all of its targets after completing just under 80% of switches in 5 working days or less against a target of 98%.