Switching energy provider? You could be owed £30
Ofgem has introduced a £30 compensation if the switch is not completed within five days.
Energy companies withdrew cheaper fixed tariffs from the market when gas and electricity prices started soaring in 2021.
And since then many households have been on variable tariffs which were controlled by the energy price cap.
However, with prices now starting to drop, deals are coming back onto the market. Because they are not tied into a fixed rate - which often comes with an early exit fee - thousands are now looking to make the move to cheaper tariffs.
It's estimated 185,000 customers will switch energy suppliers in the next few months after the latest energy price cap came in on April 1.
And to coincide with the new cap, which is £1,690, Ofgem has imposed a new, shorter deadline for energy suppliers to switch customers onto new tariffs.
Previously households were entitled to take their energy provider to Ofgem if they took 15 days or more to switch to a new supplier. This has now been slashed to five days, and even better the money is paid automatically to your energy or bank account.
Read more: Energy Switching Guide
All energy firms must abide by the rules, including the big names such as British Gas, EDF, EOn and Octopus.
The £30 must be paid by the new supplier, Ofgem said, and if it is not in your account within 10 working days, they must pay another £30.
Announcing the new rules, which launched on April 1 2024, Ofgem said: "You do not have to do anything. This money will be paid automatically into either your energy account or bank account.
"If your supplier does not pay you, or does not pay you the correct amount, for the problems you’ve had while switching, follow the steps on our complain about your energy supplier page.
"You may be able to get an extra payment from your supplier, for example if there are further delays, or if you’re switched by mistake.
"Find out if you can get compensation for problems switching energy suppliers."
Sometimes customers are switched by mistake, and they are also entitled to £30 compensation, and potentially more if suppliers are too slow to correct mistakes.
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