Energy consumers should be able to switch supplier with confidence and ease.
Ofgem has recognised that a competitive market needs a fast and efficient switching service to encourage customers to change supplier. Effective switching boosts competition which in turn benefits consumers.
The current switching arrangements, developed in the late 1990s, are complex for suppliers and can lead to delays, errors and costs, which are often borne by consumers.
What is FMRS
Ofgem has driven a programme whereby customers can expect a more reliable and quicker switching service. They have decreed all non-domestic supplies should be able to switch supplier within 2 – 4 working days. This is a significant reduction on the usual 15 working days for gas and 10 days for electricity.
When is this happening?
The change will be effective from 18th July 2022, however, there will be a three-day transition period from 19th to 21st July, during which a customer may be unable to change supplier.
Any supply contract ending on these dates will be extended so that there is no financial penalty.
Impact on businesses
Any reduction in time delays and improved easier switching processes are undoubtedly a positive for customers.
However, we would caution against thinking this means you can leave it longer before concluding contract negotiations. In the current climate, we are finding many suppliers are struggling to respond to the volume of tender requests they are receiving.