The UK’s energy watchdog has said it will slash the time within which energy suppliers must switch customer tariffs or face a fine.
Ofgem today said that from 1st April, suppliers will only have five days compared to the 15 previously allowed to switch customers to new providers or pay a £30 penalty.
The move comes as Ofgem has said it has seen an uptick in the number of customers changing their provider. The latest figures from the regulator showed a 9.3% increase in switching relative to October 2023. It also said numbers are nearly three times higher than observed in November 2022.
The regulator said the change is only for households or people who run their business from home and are on a domestic energy tariff and follows “positive feedback” to the proposed changes during the consultation phase.
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.
“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.”
Last week, the energy regulator said it is investigating the claims that wind farms may have incorrectly added close to £51m to taxpayer bills since 2018.
Additionally, it will push through a one-off price cap adjustment of £16, equivalent to around £1.33 a month, to be paid between April 2024 and March 2025.