MSE News: Regulator draws up plans for next-day energy switching

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Next-day energy switching is in the pipeline as part of a drive to make it easier for consumers to swap suppliers...

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'Regulator draws up plans for next-day energy switching'

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fredandwilma

The energy regulator Ofgem is currently consulting on the plans, which would mean customers who request to switch energy suppliers before 5pm would be moved to a new company by the end of the following day.

How are they going to enforce this with companies who are notoriously slow?

[Deleted User]

And how are they going to beef up the erroneous transfer mechanism to ensure that mistakes are corrected quickly?

And how are they going to subvert the law on consumer contracts and the mandatory cooling off rights required for all at a distance transactions.

System

Quote: Ofgem estimates its proposals could save customers between £169 million and just over £1 billion. Unquote

Who from the Ministry of Dodgy Accounting came up with this range of savings. In truth, they haven’t a clue whether it will save any money at all but they hope it will.

Quote Ofgem said it expects one-day switching to become the industry standard, but it plans to introduce regulations that require all switches to be completed within five days. It said customers could also choose their own switching date outside of this timeframe, if the company agrees. Unquote

Is it one day or five day switching? If they are saying switch today and the new account has to set up with validated meter readings within 5 days then I wish them well with this endeavour. Are they going to ‘fine’ suppliers that fail to comply: I doubt it.

System

gsmlnx wrote: »

And how are they going to subvert the law on consumer contracts and the mandatory cooling off rights required for all at a distance transactions.

When this was first proposed a couple of years ago, it was said that the cooling off period will happen as now. If a consumer changes his/her mind, then the transfer will be reversed. I can see this causing mayhem as people try to sort out their DDs etc.

Consumerist

Ofgem's consultation was launched yesterday and the regulator says it expects to make a final decision on the plans in January 2018.

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:rotfl:

System

Clearly, Ofgem values our time. From the Ofgem presentation to suppliers:

in addition to spending time emotionally engaging with a slow switch, consumers may also actively seek out further information and updates. Engaging twice on the issue and potentially carrying out a needless meter read are also areas where time could be saved. Assuming just a 7.5 minute saving of domestic consumers’ non-working time produces a NPV benefit to consumers of £72 million.

Talk about grasping at straws to inflate ANY potential cash savings.

spiro

gsmlnx wrote: »

And how are they going to beef up the erroneous transfer mechanism to ensure that mistakes are corrected quickly?

And how are they going to subvert the law on consumer contracts and the mandatory cooling off rights required for all at a distance transactions.

The last I heard it was going to be like switching your mobile phone from say VF to EE, if you change your mind with the required timeframe you simply choose a new supplier be that VF or someone else. The plan was not to reverse out the switch so you would always move forwards.

With regards to ETs OFGEM has often referred to this next stage of faster switching as 'faster and more reliable' and they believe the roll out of DCC and Smart will help this.

[Deleted User]

ET's are mainly to do with mistakes in the national database where properties have the incorrect meter registered against them. (ignoring the fraudulent cases which are rarer)
I fail to see how smart meters overcome the bad data in the system UNLESS OFGEM are saying that when a new meter is registered, it is now 100% correct. Which I doubt.
The issues with ETs are mainly the time taken by suppliers to sort out the mess and correct the billing, again nothing to do with smart meters or the DCC.
And only allowing a change to another supplier (i.e. forward) if you cancel a switch may financially disadvantage the consumer in a market where tariffs are moving up and the life span can be measured in days for a good plan.

spiro

gsmlnx wrote: »

ET's are mainly to do with mistakes in the national database where properties have the incorrect meter registered against them. (ignoring the fraudulent cases which are rarer)
I fail to see how smart meters overcome the bad data in the system UNLESS OFGEM are saying that when a new meter is registered, it is now 100% correct. Which I doubt.
The issues with ETs are mainly the time taken by suppliers to sort out the mess and correct the billing, again nothing to do with smart meters or the DCC.
And only allowing a change to another supplier (i.e. forward) if you cancel a switch may financially disadvantage the consumer in a market where tariffs are moving up and the life span can be measured in days for a good plan.

Switching is done using the MPAN/MPRN not the MSN so the incorrect MSN should not be the cause of an ET. The MPAN/MPRN is printed on your bill and that is what people should use to switch.
Not reversing the switch is designed to make utilities more like phones or car insurance, once you cancel with the old company if you change your mind and want to go back you get a new quote you don't return like nothing happened.

brewerdave

Tried but couldn't find a smiley with copious tears running down its face -next day switching? Which planet are OFGEM on? Why don't they try enforcing the existing regulations first ??