Energy switchers to receive compensation for delayed refunds

JohnB47

Interesting article in todays Guardian on line:

"Gas and electricity customers are set to automatically receive compensation if their supplier fails to hand back their final credit balance within 10 working days.

Under the new Ofgem rules, which started on 1 May, customers will also be entitled to compensation of up to £120 for so-called “erroneous switches”, where they are mistakenly switched to the wrong supplier.

Both the gaining and losing suppliers are subject to these new guaranteed standards, Ofgem says.

Customers will be entitled to a £30 payment if their previous supplier is late in refunding them their credit balance after they have switched.

Suppliers must refund any money owed within two weeks or 10 working days of a final bill being issued, or pay the compensation.

It is thought this will benefit around 200,000 customers a year, whose supplier is slow to hand back credit balances, which can easily amount to several hundred pounds.

However, Ofgem decided not to introduce automatic compensation if a final bill is more than six weeks late – something that consumer groups have been demanding."

Full article here:

https://www.theguardian.com/money/2019/may/04/energy-switchers-to-receive-compensation-for-delayed-refunds

Edit:

Seems to me like offending companies can get around this by just delaying the final bill, so that the compensation clock doesn't start ticking.

MothballsWallet

Good luck getting Ofgem to enforce that.

They're about as much use as a paper bag against a plasma weapon.

Benight

Looks like the Guardian reporters read MSE too !

https://forums.moneysavingexpert.com/discussion/5996206/energy-customers-to-get-automatic-compensation-for-switching-issues-mse-news

brewerdave

....and it is dependent on receiving the "final" bill.....for many people this proves very problematic!....and God help you, if you disagree with this bill....still haven't agreed the final bill for a supplier I left in November.