Why your energy company could owe you £30 in compensation from 1st May

Ofgem is cracking down on switching mistakes

Ofgem has announced that gas and electricity firms will be forced to payout £30 to customers in compensation for switching mistakes.

Related: Experts reveal why the Ofgem price cap drop won't actually save you any money

Savings experts such as Martin Lewis are regularly encouraging us to switch energy tariffs. However, sometimes switching can lead to all sorts of road bumps that could cause you and your wallet to feel the strain.

However, Ofgem's new rules that customers will receive automatic compensation if a switch to a new provider goes wrong should put your mind at rest. The new measures are hoped to encourage energy firms to make switches more seamless. That means customers have greater freedom to shop around for better deals.

But, if you do experience any switching-related issues, you'll still be £30 better off. Sounds like a win-win to us.

Automatic compensation for switching mistakes

white kitchen with two pendant lights

(Image credit: Future PLC/David Parmiter)

The new rule comes into effect on the 1st of May. The three main things that will lead to automatic compensation are:

Customers will be entitled to £30, to be paid by the supplier responsible, for each mistake. That means if your switch doesn't complete in time, AND you don't get a final bill within six weeks, you could receive £60.

'More customers are switching than ever, with a record 6.4 million changing supplier in 2019,' Mary Starks, executive director for consumers and markets at Ofgem told MoneySavingExpert. 'But we also know that a minority can still experience problems when they switch.'

kitchen with hub oven and cabinet

(Image credit: Future PLC/David Giles)

'As part of our commitment to protecting customers and enabling competition, we are introducing these new standards to give customers further peace of mind,' adds Mary. 'To challenge suppliers to get it right the first time.

'Going forward, we will continue working with suppliers and consumer groups to deliver our programme for faster and more reliable switching and ensure these arrangments are fit for the future.'

From 1st May, if you're due compensation you should receive it automatically. However, if you don't, contact your new or original supplier immediately to sort it out.

Related: You could be banned from the best energy deals if you don't have one of THESE

They have a duty to resolve the issue for you. However, if it still remains unresolved contact the Energy Ombudsman.

Help challenge energy suppliers to get it right the first time. From the start of May, if you're owed compensation, make sure you get it.

Rebecca Knight
Deputy Editor, Digital

Rebecca Knight has been the Deputy Editor on the Ideal Home Website since 2022. She graduated with a Masters degree in magazine journalism from City, University of London in 2018, before starting her journalism career as a staff writer on women's weekly magazines. She fell into the world of homes and interiors after joining the Ideal Home website team in 2019 as a Digital Writer. In 2020 she moved into position of Homes News Editor working across Homes & Gardens, LivingEtc, Real Homes, Gardeningetc and Ideal Home covering everything from the latest viral cleaning hack to the next big interior trend.