How long does it take to switch energy supplier? | Dyball Associates
With the rise in Ofgem’s energy price cap rapidly approaching many consumers will be looking to switch their energy supplier to get the best deals. We take a look at how long it takes to switch energy suppliers and how energy suppliers should implement the switching process to ensure they can switch customers quickly.
What is the typical switching process?
Energy suppliers should make the switching process as simple as possible for the consumer. Under Ofgem rules, if the process is needlessly overcomplicated then a supplier could be penalised and even fined.
How long does it take to change an energy supplier?
A typical switch should take no longer than 15 days, although there can be some leeway depending on the size of the energy supplier being switched to. Larger suppliers are expected to facilitate a switch quicker than a start-up for example.
We take a look at the various steps involved in a consumer switch of their energy supplier.
Step 1 – Starting the switch
Many energy suppliers now offer the ability to switch via an online form. Software such as Dyball Associates Customer Switching Portal allows energy suppliers to convert potential customers to their electricity and gas services with ease.
The consumer will fill in the form and provide necessary details such as their address, expected switch date,
Direct Debit amount, and the first payment date. The supplier should then set the consumer up with an online account so that they can monitor the progress of the switch.
Step 2 – Inform the current supplier
The supplier chosen by the customer must then contact their current supplier and inform them of their request to switch. Gas and electricity industry processes are different so both avenues must be followed and can result in a customer’s gas and electricity supply at differing times.
Step 3- Cooling off period
Once the switch is started a customer is then given a two week period where they can change their mind. An energy supplier is not allowed to impose any exit fees during the cooling-off period. During this time, it’s a good idea for the chosen new supplier to communicate regularly with their new customer and provide them with information as to why they’ve made the right decision in making the switch.
Step 4- The first reading
Typically, the new supplier will request the customer to send them an opening meter reading. The supplier must make it clear that this reading is important to ensure they have accurate energy bills in the future. It’s also a good time to explain to the customer exactly how to take a meter reading and explain their importance. If the customer has a smart meter the reading should (if everything works properly) be made automatically.
Step 5 – Completing the switch
The entire process should ideally take no longer than 15 days. The first customer payment will be taken around this date and they should have received some form of welcome pack from the new energy supplier.
Once an opening read has been received the new supplier will then send that off to the previous supplier to generate the final bill. The new supplier should make it clear that their opening read should be the same as their closing reading so that they are not charged twice accidentally.
Dyball Associates Energy Billing software can assist with this.
Also read: Dyball’s Energy Industry Software – What do we offer?
What happens if there is a delay in the switching process
If an energy supplier is well organised and utilising the right software, then they should rarely (if ever) have delays in the customer switching process. However, delays do happen, and a supplier should be prepared to compensate the affected consumer.
If a switch takes longer than 15 working days, the energy supplier should check to ensure they have the right information from the customer. If they do, then the supplier should pay out £30 in compensation for the delay.
This payment should be made within 10 working days via cheque or directly into the customer’s bank account. If this payment isn’t made within that timeframe, then the customer has the right to make a complaint and the supplier could evoke the ire of the regulator.
Also read: How to convince consumers to switch to a smaller energy supplier
The Energy Switch Guarantee
The Energy Switch Guarantee is a voluntary industry initiative launched by Energy UK back in 2016. Its purpose is to make switching simple and quick for consumers.
Currently, the Guarantee covers 80% of the UK energy market and its members can boast that they will provide consumers with a hassle-free switching process. Signing up to it can help assure customers that your energy supply business is dedicated to ensuring an effective switching service.
Also read: Energy Supplier Switching falls to a three year low despite rising Energy Price Cap
Dyball Associates will keep you informed of the latest changes and our team of energy market consultants can guide you through the steps to enter the UK energy market. Whether you’re looking for electricity and gas systems or support on starting an energy supply company, Dyball Associates can help.
Further Reading
Energy Suppliers, are you ready for the Green Gas Support Scheme and Green Gas Levy?
Total Number of Installed Smart Meters surpasses 16 million
EDF becomes first Energy Supplier to hike Energy Bills in line with the next Price Cap Level
Dyball Associates are proud to help new supply businesses successfully launch in the UK market.
Through our energy market consultancy services, and the software we’ve developed, we’re supporting new UK electricity and gas suppliers get set up and start supplying.
For more information on how to start and manage an energy company, get in touch with Dyball Associates today.
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