Can I get compensation if there is an energy switch problem?

Understanding energy switch compensation

Millions of households in Great Britain change their energy supplier every year. Most of the time, the process is quick and simple. You choose a new tariff, sign up, and the new supplier handles the rest. However, administrative errors and technical faults can sometimes cause delays. When things go wrong, you are protected by strict rules set by the energy regulator, Ofgem.

These rules are known as the Guaranteed Standards of Performance. They legally require energy suppliers to provide automatic compensation if they fail to meet basic service standards. In January 2025, Ofgem increased the standard compensation payout from £30 to £40 for most switching and billing failures. This means that if a supplier breaches a relevant standard, it must make an automatic compensation payment.

As well as the official Ofgem rules, many of the biggest domestic suppliers have signed up to the Energy Switch Guarantee. This is a voluntary pledge created by the industry body Energy UK. Suppliers who sign this guarantee promise to ensure a safe, hassle-free switch within five working days. They also agree to handle any problems behind the scenes so you do not have to spend hours on the phone trying to fix their mistakes.

When are you entitled to compensation?

The compensation rules cover the three main stages of moving to a new energy provider: the switch itself, your final bill from your old provider, and the return of any money you are owed. If a supplier misses the deadline for any of these steps, they owe you £40.

The first major protection covers the speed of your switch. In April 2024, the energy industry permanently cut the standard switching time from 15 working days down to just 5 working days. If your new supplier takes longer than 5 working days to start your new energy supply, they must pay you £40. This rule ensures you can move to a cheaper tariff quickly without being left on an expensive rate while the companies sort out their paperwork.

The second protection covers your final bill. When you leave an energy supplier, they have exactly 6 weeks to send you a final, accurate bill. This document confirms exactly how much energy you used up to the day you left. If your old supplier takes longer than 6 weeks to produce this bill, they owe you £40.

The third protection covers your credit balance. Because most households pay for their energy by a fixed monthly Direct Debit, it is very common to have credit built up in your account when you switch. Once your old supplier sends your final bill, they have 10 working days to refund any leftover credit to your bank account. If they miss this 10-day deadline, they must pay you an extra £40.

You can receive multiple payments if a supplier makes more than one mistake. For example, if your old supplier sends your final bill late, they owe you £40. If they then take too long to refund your credit, they owe you another £40. These payments stack up to ensure suppliers take your rights seriously.

What happens if you are switched by mistake?

Sometimes, a supplier will take over your gas or electricity supply without your permission. The industry calls this an erroneous transfer. It usually happens because a neighbour gave the wrong meter details when they signed up for a new tariff, or because a supplier made a typo on a national energy database. It is a stressful experience, but the rules are designed to protect you completely.

If you are switched by mistake, the new supplier that took over your account must automatically pay you £40. You do not need to stay with them. You simply need to contact your original supplier and tell them you did not ask to leave. They will then start the process of bringing your account back.

Because returning an account requires both suppliers to work together, Ofgem has strict deadlines to stop them dragging their feet. The old and new suppliers have 20 working days to agree on whether the switch was a mistake. If they take longer than this to decide whether the switch was correct, you get £40 from each supplier. Once they agree it was a mistake, your old supplier has 21 working days to re-register your supply. If they miss this deadline, they owe you another £40.

If the two companies argue about who is to blame for the incorrect switch, it is up to them to resolve it. You do not have to mediate between them. They must sort the problem out behind the scenes while you continue to pay your normal rates to your original provider.

Smart meter compensation rules

Many households upgrade to a smart meter at the same time they switch suppliers. Smart meters are essential for accessing the cheapest off-peak tariffs, so delays in getting one fitted can cost you money. To address this, Ofgem introduced new compensation rules in February 2026 specifically for smart meter problems.

The rule regarding a resolution plan is particularly important. In the past, customers with broken smart meters were often left in the dark for months. Now, when you report a smart meter problem, the supplier has 5 working days to complete an initial assessment, take appropriate action and offer you an update. If they miss this window, the £40 compensation applies.

How and when is the money paid?

One of the most important features of the Guaranteed Standards of Performance is that the compensation is automatic. You do not have to fill out complex claim forms, write formal letters of demand, or prove that you suffered financial hardship. If the supplier misses a regulated deadline, their internal systems should flag the error and issue the payment.

When a supplier breaks a rule, they have exactly 10 working days to pay your compensation. If they fail to pay the money within this 10-day window, they have broken another rule, and they owe you an additional £40 for the delay. For a continuing failure, the rules generally allow one standard payment and one additional payment for that failure.

If you have already left the supplier and closed your bank account, they must still find a way to pay you. They will usually send a cheque to your new address. This is why it is always important to give your old supplier a forwarding address when you move house or change banks.

When you cannot claim compensation

While the rules protect the vast majority of households, there are a few situations where you will not get compensation for a blocked or delayed switch. The most common reason is debt. If you owe your current energy provider money, they have the right to block you from leaving until you pay the debt off.

For customers who pay monthly, a supplier can block your switch if you have been in debt to them for more than 28 days. If you use a prepayment meter, the rules are slightly different. You can switch to a new supplier and take up to £500 of debt with you per fuel. The new supplier takes on the debt, and you pay them back over time. However, if your prepayment debt is over £500, your current supplier can block the move.

The rules are also different if your energy supplier goes out of business. When a company fails, the standard compensation triggers do not apply. Instead, Ofgem steps in with a process called the Safety Net. This system ensures your energy supply is never cut off. Ofgem will automatically move your account to a new, stable supplier. The Safety Net also protects any credit held on your account. The new supplier will work with Ofgem to restore your credit balance, but you will not receive a £40 penalty payment for the disruption.

The real cost of delays and how to complain

Switching delays are not just an administrative annoyance, they have a real impact on your household finances. With the Ofgem price cap for July to September 2026 sitting at around £1,663 a year for a typical dual-fuel home, energy is expensive. If you are trying to move to a cheaper fixed tariff, every extra week you spend stuck on your old supplier's standard variable rate costs you money.

The UK government recognises this problem. In April 2026, they announced new reforms to give Ofgem stronger tools to penalise energy executives for poor market practices. These reforms aim to ensure households get faster redress when their suppliers let them down. However, even with strict rules in place, automatic payments can sometimes fall through the cracks.

If you are unsure about your rights or need help writing a formal complaint, you can contact Citizens Advice. They offer free, independent support for energy consumers across Great Britain and can help you navigate the process if a supplier is refusing to pay the compensation you are owed.