Switching energy suppliers has over the years proven to be a little unreliable. A process that as standard took 21 days, could be further delayed through an objection by the current supplier. Frustratingly these objections were often not justified and potentially a way of holding onto supplies a little longer, exposing customers to higher non-contracted rates. This helped to undermine consumer confidence in the process. Our experience tells us that customers would hesitate to move for smaller savings simply to avoid such issues and liability.
In response on the 18th July 2022 Ofgem rolled out the Central Switching Service (CSS) managed by the Data Communications Company (DCC) for Gas and Electricity, both domestic and non-domestic supplies. There has been a long period of data cleansing, testing and supplier system upgrades to avoid issues. Concern remains that at the time of the rollout, with switching levels being so low due to very poor market conditions, that once there is a significant price reduction, the system could be overwhelmed. Ofgem have reiterated their confidence in its ability to cope.
The aim is to speed up the process, make it more reliable and remove the perceived barriers of switching.
Consumers will see a number of benefits:
- Switch times should take no longer than 5 workings days.
- Be reduced from a possible 21 days to potentially 1 working day for domestic supplies.
- Potentially 2 working days for non-domestic.
- A supplier objection window that was 7 days has been reduced to 1 day for domestic and 2 days for non-domestic. This will allow issues to be resolved much quicker and another switch request to be processed.
When a domestic customer signs a contract, they have the right to a 14-day cooling off period, which remains. The customer should be given the choice whether they want the switch process to start straight away or after the 14 days. In the event the switch is within the period, the customer still has the right to cancel the contract, but will be liable for any charges for the short time they were switched.
Non-domestic customers do not have 14-day cooling off periods, so businesses should benefit greatly from faster switching.
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