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What Is Faster Switching?

As we all know, rising energy bills are affecting domestic and business energy users around the UK.

Many businesses are implementing measures to improve efficiency and reduce energy waste. Another great way to save money on energy bills is by exploring the energy market for the best deals.

Finding great deals is only one step, and for many switching gas or electricity suppliers can seem like an inconvenience.

Thankfully, a recent regulatory project has been implemented by Ofgem. This is to help businesses switch suppliers quickly and easily.

This article will explore what Faster Switching is, and how it can help you switch from your current energy supplier.

We will also explore the benefits of combining the centralised switching service with business energy brokers and consultants. This will result in faster, more reliable switching.

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What Is The Faster Switching Programme?

The Faster Switching project was implemented by Ofgem (The Office of Gas and Electricity Markets) in 2022. Its aim was to facilitate the quick and easy switching of energy suppliers.

Ofgem’s Faster Switching program has been implemented in the UK to simplify and expedite the process of switching energy suppliers.

The program aims to remove barriers that may discourage consumers from switching to better energy deals.

The aim is to promote competition in the energy market, which should result in lower energy bills. It will also provide a better service for customers.

The Faster Switching program ensures energy suppliers coordinate with each other for a smooth and prompt transfer of customers between companies.

The new central switching service allows customers to switch their gas or electricity supplier in five days.

This process is facilitated by a central database managed by the Data Transfer Service (DTS). This ensures customer information is accurately and securely transferred between suppliers. It’s essential to providing peace of mind to customers.

The program includes measures to protect customers from being switched without their consent. It also ensures that customers are properly informed about the process and their rights during the switching process.

Ofgem’s Faster Switching regulatory project has been widely hailed as a success. The majority of energy suppliers now offer Faster Switching to their customers.

The program has led to increased competition in the energy market. This has resulted in better deals for consumers and a more efficient and transparent process for switching suppliers.

Why Is The Centralised Switching Programme Happening?

The idea behind a central switching service is to benefit energy consumers and promote competition in the energy market.

Older processes that delayed or made it difficult to switch suppliers put a lot of domestic and commercial energy users off. The time and effort it took to manage the switch made it a daunting, and sometimes costly task.

Some energy switches also had the potential to fail because of the lack of data provided. This could result in businesses having to continue paying higher bills.

If a deal was coming to an end and the proposed switch failed, it often resulted in higher out-of-contract rates.

By making the process of switching energy suppliers easier, the project is aimed at benefitting the customer. Not only will customers find the process easier, but they may also find more competitive rates in the energy market.

Rising energy bills are affecting everyone. However, it is important to remember that energy suppliers are still businesses that want your custom.

Being able to switch more freely encourages suppliers to offer better rates to entice new customers. Customer retention is also a big focus and can result in better rates being offered to existing customers.

When Will The Switching Service Go Live?

The great news for customers is that the Faster Switching process has already been implemented. July 18th, 2022 saw the launch of the service. The faster switching process dropped the average time it took to switch providers from around 21 days to a maximum of 5.

What Are The Key Dates To Be Aware Of?

The key dates for the central switching service passed in 2022. The main one was the day it went live. Other important dates for the switching programme included:

18/6/2022

Start date for the transition period

4/7/2022

Final SSD (Supply Start Date) Registration date

12/7/2022

Final registration date for new gas connections

13/7/2022

Final registration date for new electricity connections

18/7/2022

Faster Switching Programme live date

19/7/2022 to 22/7/2022

Industry blackout dates

23/7/2022

First CSS (Central Switching Service) Faster Switching registration date

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How Will This Centralised Switching Service Impact Your Business?

The new central switching service will affect businesses that work within the energy market. They will have to adapt processes to meet new regulations.

Businesses that use an energy supplier for their gas and electricity will benefit from the Faster Switching Programme.

The switching program is designed to remove any complexity associated with switching suppliers. The intention of simplifying the process should allow for greater market movement.

If a business isn’t completely satisfied with its energy supplier, it will find it much easier to switch. It will also reduce the time it takes to switch suppliers to five days.

Customers that will be able to switch between suppliers in five days include:

  • Customers that are out of contract and are paying out-of-contract rates
  • Customers with deals ending within two days and have supplied notice
  • COT (Change of Tenancy) customers

Your current energy supplier does have the right to object to the switch. They will be able to do so up until 5 pm on the day prior to new contract start dates.

Customers on fixed-term contracts are not eligible to switch suppliers until the agreed termination date.

In some cases, it’s possible to pay an early exit fee to terminate the contract. This will be up to you and your current supplier to negotiate.

Early exit fees vary between suppliers. You should contact them or check your contract for more information.

In some cases, paying an exit fee and moving to a better rate can be a cost-effective decision. It’s important you check to see whether the savings are enough to cover the cost of leaving your supplier early.

Switching Your Business Gas Or Electricity Supplier With Business Energy Comparison

The new Faster Switching process is a great Ofgem regulatory project. It will promote faster, more reliable switching for many customers. It will also enable customers to take advantage of better energy rates.

The opportunity for business customers to lower switching periods from up to three weeks to five working days is excellent.

However, many business customers can still be put off by having to find the best rates.

There are many providers in the energy industry, and checking them all would take a considerable amount of time.

If a business is going through the hassle of trying to reduce energy bills, they don’t want a laborious process that takes up valuable man-hours.

Thankfully, Business Energy Comparison is on hand to help. We are in a position to identify the best rates in the energy industry to suit your needs. We can then help with switching arrangements to make the whole process hassle-free.

We can provide you with business utility quotes from some of the biggest UK energy suppliers in minutes.

All we need from you is your business address. We then use industry-held data to access the information we need to supply you with the latest business electricity rates and gas prices.

You can then explore the extensive range of business gas and electricity quotes to find the right one for you.

Business Energy Comparison is with you every step of the way to help you enjoy a convenient switching process without disruption. Our team of experts are on hand to offer support and answer any questions you may have during the process.

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Conclusion

The new Faster Switching process implemented by Ofgem is designed for customers. It streamlines processes and makes it easier for business customers to enjoy better service and rates.

The process of switching suppliers used to be a laborious process that could break down at any moment. This made it easier for energy suppliers to keep hold of customers without offering the service or rates that would benefit them.

The new switching programme ensures the energy industry remains competitive. The freedom to move between suppliers encourages them to offer their existing customers more.

The opportunity to entice new customers is also an incentive for energy suppliers. To do this they will typically improve customer service and offer competitive rates.

Combining the new switching programme with the service we provide at Business Energy Comparison is an excellent option. It has never been easier to switch business electricity or gas suppliers.

We enable consumers to find the best rates on the market for their specific needs. You can then compare business energy quotes to find the best deal for you.

We can then take advantage of the new Ofgem switching programme to ensure you are with your new supplier quickly.

The main objective of many businesses that are moving suppliers is to enjoy better service and more competitive rates.

The sooner you can get switched the better, and we can help with small or large business energy needs.

Frequently Asked Questions

Will the Faster Switching Programme change in the future?

The Faster Switching programme has been designed by Ofgem to facilitate the easier and quicker changing of energy suppliers. If opportunities arise for Ofgem to streamline the process further in the future they may choose to do this.

There had been some discussion regarding the turnaround times being moved down from five working days to two at some point in the future. While nothing has been agreed upon at present, this might be one avenue they explore.

Can I switch business energy suppliers at any time?

You can switch business energy suppliers at any time, but there may be an exit fee if your contract has not finished.

When agreeing to a contract with your supplier, they will detail any early exit fees that would be owed should you wish to leave.

Early exit fees are only payable if you are still within the agreed contract period and wish to leave.

Can my existing supplier stop me from switching?

Your existing supplier may stop you from switching if you are still bound by a fixed-term contract. Paying the exit fee penalty will usually allow you to switch.

Existing suppliers can also stop customers from switching if they have an outstanding balance. This would have to be paid off before you could switch.

Ongoing disputes with an existing energy supplier can also delay switching. If you have an ongoing dispute, trying to resolve this before moving is best.

If your supplier is refusing to let you switch and you believe this is unfair, you can contact the Citizens Advice Bureau. The Citizens Advice Bureau will provide further advice and guide you on how to contact the energy ombudsman. This may be required if your complaint is not being dealt with to your satisfaction.