Summary
Amendment to Electricity and Gas (Standards of Performance) (Suppliers) Regulations 2015, adding definitions for 'new supplier', 'old supplier', 'last resort supply direction', and 'valid contract'. Introduces new regulations 6A-6D covering identification, investigation, and resolution of erroneous customer transfers between energy suppliers, plus requirements for refunding credit balances within 10 working days. Also amends regulation 8 (payment obligations) and adds exemptions 7A-7B limiting supplier payment obligations under certain circumstances.
Reason
These regulations support competitive energy markets by building consumer confidence in supplier switching. They address the genuine problem of erroneous transfers (customers switched without valid contracts) by establishing clear processes for identification, investigation, and resolution within defined timeframes. The credit balance refund requirements (regulation 6D) ensure customers receive outstanding balances when switching, which is essential for market liquidity and consumer participation. Without such rules, fear of being trapped in erroneous transfers would deter switching, reducing competition. The exemption provisions (7A, 7B) reasonably limit supplier liability where customers provide inaccurate information or genuine disputes exist. These are facilitative consumer protections that enable, rather than restrict, market functioning.