How Long Does It Take To Resolve An Erroneous Transfer?
Yes. And no.
In domestic energy markets, you have the opportunity to receive compensation for ETs. As of May 1, 2019, Ofgem – the UK’s energy regulator – implemented rules and regulations that guarantee automatic compensation for certain issues if you switch energy suppliers for your business.
If your domestic energy supply has been switched without your permission (or if your credit balance is not refunded) within 10 days of receiving your final bill from your old supplier – you are likely entitled to a compensation payout.
In domestic energy supply instances, this includes:
- You should receive a minimum of £30 for the inconvenience caused.
- The maximum compensation you can receive is £120 – which is usually paid by the new supplier if your energy supply has not been promptly switched back on.
However, these compensations do not apply to business energy supply. In the case of ETs in business energy, the £30 compensation is seen as insufficient, making this rule not applicable to business electricity prices or business gas rates.
The UK government has introduced two support schemes aimed at non-domestic and business energy consumers.
- The energy bill relief scheme.
- The energy bill discount scheme.
- Provides bill relief for non-domesticated consumers (i.e. businesses, schools, hospitals) that are off the gas grid and use alternative fuels for heating.
- Allows eligible businesses to receive a fixed payment of £150.
- Gives businesses that require/use more heating the ability to receive “top-up” payments based on their actual energy usage.
- Aims to make business energy bills more manageable and supports companies that use alternative fuels.
- Allows eligible businesses to receive unit discounts on energy bills between April 2023 to March 2024.
- This discount is subject to a maximum limit (for Great Britain and Northern Ireland) and is based on wholesale prices.
- Prices business electricity at £19.61 per megawatt-hour (MWh) with a price threshold of £302 MWh.
- Prices business gas at £6.97 per MWh with a price threshold of £107 MWh.
- The discount is calculated by the difference between wholesale prices reflected on the energy contract and the price threshold (as mentioned above).
- This discount is gradually phased in until the MWh reaches the maximum discount per fuel usage (gas and electricity).