Ofgem has today announced a radical shake up of the energy switching process by approving suppliers’ proposals to cut the switching time to three days after the statutory two week cooling off period by the end of 2014. Further reforms will see next day switching in place by 2018.
Ann Robinson, Director of Consumer Policy at Uswitch.com, says: “Today’s announcement is exactly the sort of game-changer that is needed to encourage consumers to engage with the energy market. By speeding up the time it takes to switch energy supplier, households will feel the benefits of moving to a new tariff even sooner.
“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. We’ve already seen the impact the introduction of seven-day switching has had on the current account market – with switching activity increasing by 14% since last September – and would hope to see a similar level of engagement as a result of streamlining switching in the energy market.
“However, the industry shouldn’t wait for the outcome of the Competitions and Markets Authority investigation which could be two years from now – it’s important to get the market working for consumers in the here and now. Today’s announcement is a strong indication that we are moving in the right direction. Empowered consumers are more engaged with the market which could help them make real savings on their bills.”
Charlotte Nunes
Phone: 020 7148 4664
Email: charlotte.nunes@uswitch.com
Twitter: @uswitchPR
Source: Payments Council - http://www.paymentscouncil.org.uk/media_centre/press_releases/-/page/2863/
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