New Rules Proposed For Switching Providers

Consumers should be able to switch energy suppliers using their TV, broadband and telephones, without charge and have the data on how they consume the services freely available, Business Minister Nick Boles has said.

Minister Boles has announced a series of 'Switching Principles', which lays out what consumers should expect from providers when they switch.

Research shows that currently more than three-quarters of UK consumers have never switched their mobile phone provider and more than two-thirds have never changed their broadband supplier.

Business Minister Nick Boles said: "By setting out clear principles for switching suppliers, this government will make it simpler and easier for consumers to shop around for the best deals.

"All too often families miss out on hundreds of pounds of potential savings because they think it will be too complicated or take too long to switch.

"Consumers have a key role to play in driving firms to be more competitive so we also want to hear from them and industry on how businesses can be more responsive to customers."

The Switching Principles include:

• switching should be free to the consumer unless they are aware of and have consented to reasonable restrictions and charges to do so

• the switching process itself should be quick, at an agreed date

• the switching process should be led by the organisation with most interest in making the switching process work effectively – the gaining provider

• consumers should have access to their consumption or transaction data. This should be in a format that can be easily reused (e.g. Midata) and they should be able to authorise third parties such as comparison sites to access their data to help them to switch

• sites and tools providing comparisons to consumers that receive payments from suppliers should make clear where this affects the presentation of results

• there should be an effective process for consumers to get redress if anything goes wrong in the switching process

The government are also seeking the opinions of consumers across the country to share their views on how switching could be improved, as well as sharing their own experiences as part of a government drive to make changing providers quicker and easier.

(MH/CD)