Energy Switch Guarantee - clear as mud

jamei305

The Energy Switch Guarantee is meant to guarantee service standards for switching suppliers, but I'm having trouble finding out what it actually guarantees.

My new supplier says it guarantees "switching suppliers will take no longer than 21 days" but doesn't mention compensation if that is not met.

The official website doesn't mentioned 21 days but does say "customers can switch to a new tariff within 5 working days"

The actual full text of the guarantee seems to confirm this and states "you can move to a new one within 5 working days" but again they use the word "can", so it doesn't really sound like a guarantee, and there's no mention of any compensation if you can't.

The OFGEM press release for the launch of the guarantee says "customers will receive an automatic £30 payment from suppliers...if their switch takes longer than 15 working days"

So what's the deal here? What's the guaranteed time for switching and if there's compensation why isn't this mentioned in the guarantee itself?

[Deleted User]

AFAIK, there is no guaranteed performance payment for a failed switch as it can involve a number of parties/issues. For example, a switch request will fail if there has been a transfer of supply in the last 28 days. This can be nothing more than the current supplier switching accounts to a new billing system sub-co. The old supplier can also block a switch if there is an outstanding debt. It would be unreasonable for the gaining supplier who manages the switching process to pay for switching failures when it isn’t the responsible party.

MultiFuelBurner

Faster switching is now in place normally 5 days or less.

So far so good for us.

If you do experience an issues raise a complaint and if unsatisfied take it to the ombudsman.

Not everything in legislation has to come with a fixed fine amount as said above an issue can be anywhere along the process.

ArbitraryRandom

I think this might have the info you want? 

https://www.ofgem.gov.uk/publications/supplier-guaranteed-standards-performance-switching-second-phase-final-decision-and-statutory-instrument

They amended the existing regulations to include transfers. 

As per Dolor's comment: 

“Obligation to complete a supplier transfer

6ZA.—(1) This regulation applies where a customer requests a supplier transfer.

(2) This regulation does not apply where the supplier transfer cannot be completed because—

(a) the customer notifies the new supplier that they do not wish the supplier transfer to take place;

(b) a previous supplier transfer is being processed in relation to the same meter point; or

(c) the customer’s current supplier objects to the supplier transfer.

(3) Where this regulation applies the new supplier must complete the supplier transfer—

(a) within the period of 15 working days beginning with the day of receipt by the new supplier of

sufficient information to—

(i) confirm the supplier transfer relates to the customer who requested it, and

(ii) identify the meter point or meter points to which the supplier transfer request relates;

(b) where the customer has requested a supplier transfer takes places on a date after the end of the

period referred to in sub-paragraph (a), on the date requested; or

(c) where the customer has existing debt on a prepayment meter and the new supplier agrees to be

assigned that debt, within the period of 15 working days beginning with the day of that

assignment being agreed between the old and new supplier, but no later than 32 working days

from receipt by the new supplier of the information in sub-paragraph (a)(i) and (ii).

jamei305

Thanks for the info, but I'm still not clear why the Energy Supply Guarantee mentions 5 working days but doesn't mention 15 working days. Nor why it fails to mention compensation, when apparently compensation is mandated for suppliers failing to meet the 15 working day deadline.

Gerry1

It's really quite straightforward.

The standard switching time is 15 working days, but some suppliers have signed up to a voluntary scheme with higher standards where it takes only 5 working days.  That's why it says you can switch: you can IF you choose one of the participating companies.

Similarly, I doubt that the Ritz menu mentions Big Macs...

jamei305

Gerry1 said:

It's really quite straightforward.

The standard switching time is 15 working days, but some suppliers have signed up to a voluntary scheme with higher standards where it takes only 5 working days.  That's why it says you can switch: you can IF you choose one of the participating companies.

I don't think it's simple at all. A "guarantee" should set out minimum standards that must be met, not some sort of corporate target that you might benefit from if you're lucky. The current Energy Supply Guarantee fails to mention the thing that should be guaranteed, instead mentioning something that is only a possibility and for which no compensation is payable if you don't get it. Perhaps they should rename it the Energy Supply Aspirations.

ArbitraryRandom

jamei305 said:

Thanks for the info, but I'm still not clear why the Energy Supply Guarantee mentions 5 working days but doesn't mention 15 working days. Nor why it fails to mention compensation, when apparently compensation is mandated for suppliers failing to meet the 15 working day deadline.

You asked what was 'guaranteed' - that's what's in the new regulations. 

Everything else is a (non-guaranteed) voluntary commitment or 'promise' that you would need to complain to the ombudsman about if you were unhappy. 

jamei305

ArbitraryRandom said:

jamei305 said:

Thanks for the info, but I'm still not clear why the Energy Supply Guarantee mentions 5 working days but doesn't mention 15 working days. Nor why it fails to mention compensation, when apparently compensation is mandated for suppliers failing to meet the 15 working day deadline.

You asked what was 'guaranteed' - that's what's in the new regulations. 

Everything else is a (non-guaranteed) voluntary commitment or 'promise' that you would need to complain to the ombudsman about if you were unhappy. 

I asked about this "guarantee":

https://www.energy-uk.org.uk/wp-content/uploads/2023/03/Energy-Switch-Guarantee_A4-Customer-Update-2022.pdf

Turns out it's not a guarantee at all, and it's misleading that they have titled it thus.

ArbitraryRandom

jamei305 said:

ArbitraryRandom said:

jamei305 said:

Thanks for the info, but I'm still not clear why the Energy Supply Guarantee mentions 5 working days but doesn't mention 15 working days. Nor why it fails to mention compensation, when apparently compensation is mandated for suppliers failing to meet the 15 working day deadline.

You asked what was 'guaranteed' - that's what's in the new regulations. 

Everything else is a (non-guaranteed) voluntary commitment or 'promise' that you would need to complain to the ombudsman about if you were unhappy. 

I asked about this "guarantee":

https://www.energy-uk.org.uk/wp-content/uploads/2023/03/Energy-Switch-Guarantee_A4-Customer-Update-2022.pdf

Turns out it's not a guarantee at all, and it's misleading that they have titled it thus.

I see nothing on that page that's incorrect... and nothing that mentions entitlement to compensation. 

The commitment on that page that if something goes wrong the supplier will take responsibility for sorting the problem - and that they will provide evidence of complying with the standards/performance will be reviewed annually.

As you have been advised, repeatedly, if they fail to meet this (non-statutory) 5 day commitment - you can complain and, if needed, escalate it to the ombudsman. If the delay takes longer than 15 days then you automatically entitled to the (statutory) £30 compensation. 

Bendo

I've just started my switch to Octopus. Was happy to see they think they can get through switch done in just 2 days.