Ofgem rule change from today will see more households get £30 payment

Ofgem has brought in a new rule from today which will see more households get a £30 payment from their supplier.

Households who choose to switch their energy firm are paid compensation if their supplier fails to switch them over quickly enough.

Previously, suppliers had 15 days from the date of the request to complete the switch before having to pay out. But from today, April 1, suppliers will only have five days to complete the move. If they fail to complete the switch, customers will be entitled to a £30 pay out.

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The move comes as more households are expected to switch their energy suppliers in the coming months as they chase down cheaper rates. Ofgem said switching rates have been increasing each month.

The regulator said it hoped the move would "empower" customers to take control of their energy bills. It added that it made the decision following extensive consultation and that the move has received widespread support from leading charities and consumer groups.

At the time of the announcement, Melissa Giordano, deputy director for retail systems and processes at Ofgem, said: "Customers who see better energy deals on the market or experience poor service must be able to vote with their feet and move energy supplier quickly."

"As regulator, we have already slashed the amount of time within which suppliers must switch a customer by two-thirds to just five working days. We are now going further by requiring any supplier who misses that deadline to pay the affected customer £30."

"We are already seeing switching levels up from last year, and now, this new move welcomed by leading charities will further empower