Octopus, EDF, British Gas and Eon to pay customers £30 if they break new rule

The new rule from Ofgem around switching suppliers was introduced earlier this month

Every major energy company in the UK is being ordered to pay customers £30 if they break a new rule which was introduced this month. The likes of British Gas, OVO, EDF, E.On, Octopus and Scottish Power are among them.

Energy ombudsman Ofgem has introduced the new rule, which came into play from April 1, and means that customers could receive a £30 compensation payout if it isn't followed by energy providers. Ofgem sets the price cap that energy firms cannot exceed for a variable tariff.

Energy customers can switch to a new electricity or gas supplier at any time, with the new supplier responsible for switching customers from their old supplier. Yorkshire Live reports that some fixed tariffs include a clause with an 'exit fee', which can be as much as £35 per fuel in some cases, but these do not apply to standard variable tariffs, for example anyone not on a 'fix'. And because the energy market has been so volatile of late, most people still won't be on a 'fix' because the standard variable has been cheaper.

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Now, under the new Ofgem rule, if your new supplier takes longer than five working days to switch you from your old supplier, they must pay you £30 in compensation. Ofgem says: "You do not have to do anything.

"This money will be paid automatically into either your energy account or bank account. If your supplier does not pay you, or does not pay you the correct amount, for the problems you’ve had while switching, follow the steps on our 'complain about your energy supplier' page."