Chart of the week | Switching standards suggest significant supplier spend

Having consulted on proposals to introduce new Guaranteed Standards (GS) to improve the switching process. Ofgem has decided to implement four of seven GS from Spring 2019:

  • GS B requires suppliers to agree whether a switch is valid or erroneous within 20 working days of identification of a possible erroneous switch
  • GS D requires whichever supplier is contacted by the customer to send the Erroneous Transfer Customer Charter (ETCC) “20 working day letter” to that customer within 20 working days
  • New GS A1 requires the losing supplier to re-register an erroneously switched customer within 21 working days of an erroneous switch being identified
  • GS F requires the losing supplier to refund credit balances within 10 working days of sending the final bill

Based on the recent switching activity and incidences of erroneous transfers, our chart this week shows the amount of money that would have been transferred to consumers had the GS been in effect. Estimated breaches are based on an Ofgem 2017 Request for Information (GS B and F) and its own extrapolated switching data (GS D and A/ A1).

To keep reading, please log in to your account

Alternatively, please sign up to receive free market insight online and direct to your inbox

Related thinking

Home supply and services

Chart of the week | Green hair, green branches, green skin, green tariffs?

In this 'Chart of the week', we look at how prevalent green supply has become, unpick some of the drivers behind this, and look at the challenges now facing consumers, suppliers and policy makers confronted by a sea of green.  Over recent years, we estimate the percentage of households with...

Home supply and services

Chart of the week | SoLR process sees largest supplier exit

This January saw the largest supplier exit through Ofgem’s Supplier of Last Resort (SoLR) process. Green Network Energy ceased to trade on 27 January, with Ofgem appointing EDF Energy as SoLR for its 360,000 domestic customers shortly after. On the same day, the regulator announced the exit of Simplicity Energy,...

Home supply and services

Chart of the week | SoLR process sees largest supplier exit

This January saw the largest supplier exit through Ofgem’s Supplier of Last Resort (SoLR) process. Green Network Energy ceased to trade on 27 January, with Ofgem appointing EDF Energy as SoLR for its 360,000 domestic customers shortly after. On the same day, the regulator announced the exit of Simplicity Energy,...

Energy storage and flexibility

Chart of the week | Increasing electricity balancing costs and an increasing System Operator role

Last week saw the publication of Ofgem's review of GB energy system operation. This makes recommendations that the roles and functions of the electricity and gas system operators need to change in light of net zero. In this week's 'Chart of the week', I wanted to focus on one aspect...

Home supply and services

Chart of the week | Nearly 6mn customers switched electricity supplier in 2020

This article was originally published as part of a larger piece in Energy Spectrum, published on 25 January 2021. To find out more about a subscription to Energy Spectrum, contact Nick on n.palmer@cornwall-insight.com. This week's 'Chart of the week' discusses the latest electricity switching figures from Energy UK, published on 21...

Regulation and policy

Chart of the week | Ofgem Switching Programme regains momentum

This 'Chart of the week' follows the seventh edition of Cornwall Insight’s Faster Switching Service (FSS), issued on Monday. Our FSS is designed to help readers understand Ofgem’s major industry programme to deliver faster and more reliable switching for consumers. The service comprises two elements: a walk-through of the entire...

Home supply and services

Chart of the week | Is switching recovering after lockdown lows?

Energy UK’s electricity switching statistics for October show that there were 591,156 supplier switches during the month. This figure is down 6% on October 2019, and is the lowest switching seen in an October since 2016. Yet, switching has reached a high for 2020 despite COVID-19, even though that high...

Home supply and services

Chart of the week | COVID-19 research findings published ahead of strengthened consumer protections

This 'Chart of the week' comes from Ofgem’s latest research on the impacts of COVID-19 measures on energy consumption and customer’s financial wellbeing. Published on 6 November, the findings presented come from the third wave of this research, with fieldwork being conducted in April, May, and October. While those reporting...