Energy supplier shakeup will allow customers to switch in three days

http://www.theguardian.com/money/2014/jun/16/energy-supplier-shakeup-customers-switch-big-six

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Householders will be able to switch energy suppliers within three days by the end of this year under major new rules for the industry to be unveiled on Monday by the regulator, Ofgem.

The watchdog said it will also make the switching process much more easy and reliable, while revealing it is already working on a 24-hour switching system to be ready by 2018.

Enabling customers to easily move from one supplier to another is seen as a vital way of breaking the dominance of the big six power companies such as SSE and British Gas, while helping new entrants such as Ovo or Good Energy to grow.

"Consumers can change their bank in seven days, their mobile phone in just a couple, but have to wait significantly longer to switch their energy supplier," said Dermot Nolan, Ofgem's chief executive.

"We know that consumers want a reliable and efficient switching process, and that concerns about it going wrong can put them off shopping around for a better deal. So following the steps we have taken steps to make the market simpler, clearer, fairer, we are now leading a programme which will deliver faster, more reliable switching," he added.

The move, which comes amid continuing anger about soaring bills and frustration about poor service, was welcomed by consumer groups and the small but growing independent supply sector.

"Faster, easier switching would be welcome news for consumers trying to find a better energy deal," said Which? executive director, Richard Lloyd. "Suppliers should introduce 24-hour switching as quickly as possible, under close scrutiny from Ofgem so that the cost to consumers of the new system does not spiral. It will also be essential that suppliers do more to introduce simple pricing so consumers can easily see the best deal for them before they switch," he added.

Ann Robinson, director of consumer policy at uSwitch.com, described the announcement as a "game-changer" that she believed was needed to encourage consumers to engage more deeply with the energy market.

"With half of households yet to switch their energy supplier, it is clear there are barriers that need to be broken down. For many of these, it will be a question of confidence and fear of the unknown. However, measures such as those outlined today should improve this and provide people with greater reassurance."

Good Energy, an independent power supplier, also welcomed the move. It said: "It should be easy for customers to engage with energy suppliers, and this is another step in the right direction."