Ofgem says suppliers must return final credit balance within 10 working days
Gas and electricity customers are set to automatically receive compensation if their supplier fails to hand back their final credit balance within 10 working days.
Under the new Ofgem rules, which started on 1 May, customers will also be entitled to compensation of up to £120 for so-called “erroneous switches”, where they are mistakenly switched to the wrong supplier.
Both the gaining and losing suppliers are subject to these new guaranteed standards, Ofgem says.
Customers will be entitled to a £30 payment if their previous supplier is late in refunding them their credit balance after they have switched.
Suppliers must refund any money owed within two weeks or 10 working days of a final bill being issued, or pay the compensation.
It is thought this will benefit around 200,000 customers a year, whose supplier is slow to hand back credit balances, which can easily amount to several hundred pounds.