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Liverpool Echo
Liverpool Echo
World
Gemma Jones

Energy customers could be compensated for 'rare' error

If you get an unexpected final bill or welcome letter from an energy supplier, your supply might have been switched without your agreement.

Occasionally an energy supplier will take over the supply of a property by mistake - causing the customer to change supplier without consenting to it. This is known as an erroneous transfer.

Energy regulators Ofgem said erroneous transfers (ETs) can be caused by a number of factors, including inaccurate switching data, mis-selling, fraud or contract cancellations not being executed properly. The good news is you should automatically receive compensation.

READ MORE: Stamp Duty warning to anyone with a mortgage in the UK

Here is everything you need to know about erroneous transfers - including how to spot if it has happened, how to resolve the issue and what compensation you could be entitled to.

How do I know if there has been an erroneous transfer on my energy account?

If you have received a “sorry you’re leaving” email by your energy supplier or a final bull, but you didn’t think you were leaving then you have probably had an erroneous transfer. You should also look out for a welcome letter from a new supplier when you haven't agreed to change to them.

If you have been misled by a sales person then this could also count as an ET. Otherwise, a supplier could make a mistake - for example by confusing your address with someone else’s.

What to do if you have an erroneous transfer?

Citizen's Advice said you should contact your supplier. You need to let them know you didn’t agree to the switch, and ask them to cancel it if it’s still in progress. If the switch has already happened, ask them to reverse it.

Once a supplier has been contacted about a possible incorrect switch, they will contact the customer within five working days to explain what they plan to do. The customer should then receive confirmation of whether an erroneous transfer has happened and the next steps within 20 working days.

Your old supplier should switch you back within 21 days of the date they agree a mistake was made. When you’re switched back you’ll still get bills from your old supplier - you won’t have to pay the new supplier anything.

What compensation are victims of erroneous transfer entitled to?

You'll automatically get a minimum of £30 in compensation from the new supplier. They should pay this within 10 workings days of the date they agree a mistake was made. They'll either send you a cheque or pay directly into your bank account if they have your bank details.

The maximum you can get is £120, which is payable if your energy isn’t switched back to your original supplier in a timely way. All suppliers must follow the deadlines in the ‘erroneous transfer customer charter’. You'll be entitled to an extra £30 of compensation if any of the following apply:

  • The supplier takes more than 20 working days to reply
  • Your old and new suppliers take more than 20 working days to agree whether your switch was correct - they both owe you £30 if this happens
  • Your old supplier takes more than 21 working days to re-register you once they know about the mistake

Which bill should you pay while the erroneous transfer is being rectified?

You should continue to pay your original supplier, just as normal. The two suppliers will work together to make sure that you’re never left out-of-pocket, and you’ll never have to pay a supplier that you didn’t consent to join.

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