OFGEMS new ruling is not working.

Bark01

Switched without a problem

Should you signal an intent to either change suppliers or change tariffs following notification of a price change or product closure suppliers have to automatically hold you at your old prices (unless the new prices are cheaper).

To trigger the price hold your current supplier needs to receive a loss flow from your new supplier in a price hold window

The price hold window starts from the day you receive notification of either a product closure or a price change – I.e. 49 days before the change happens
The price hold window ends 20 working days after the effective date of the change.

Your prices are then held at the old rate for a period that would give reasonable time for the switch to occur (this is a slightly grey area but should be at least a month).

So in your scenario:

Product ends on 31st May
Notification of product end should be received 42-49 prior to this
This is the start of the price hold window – this would have been around the 13th April.

Price hold window closure is 20 working days after 31st May - i.e. 3rd of July

So as long as your new supplier gets a loss flow to BG between 13th April and 3rd of July, BG have to hold your prices at their current rate until the transfer happens.

If you move onto BG's standard rate and they bill you on this before a loss flow is received and then a loss flow is received that triggers a price hold, BG need to cancel any charges at the standard rate and re-bill you at your old products rate.

You don’t need to do anything during this process, your new supplier should handle it all.

This is a direct result of OFGEMs recent changes. Something similar was in place before but to activate a price hold you needed to ring your supplier and specifically ask for it. Its now fully automated.

JRL_2-2

Thanks Bark01

Goodness! That's a new one. Yet more for the ordinary consumer to take on board. I can't imagin how the average man or woman in the street can expect to have any confidence in this complex procedure.

Where is the simplicity of Ofgems rulings.

Why can't Ofgem follow a similar path to the recent introduction of switching banks.
Simply pass the process over, they adhere to a STRICT switch time or face themselves a penalty. It's worked with banks why not energy companies. Simplicity with transparency.

Bark01

Switched without a problem

The simplicity is you don't have to do anything other than sign up to your next supplier in a reasonable time after your notified your tariff is ending. Then your new supplier handles the switch.

You don't need to worry about all the rules and regulations, if someone was to come on here on start listing all the rules and regulations the banks have to adhere to it would sound mightily confusing.

undaunted

Ofgem....... not working....... and you're surprised? They are about as much use as a chocolate fireguard!