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Erroneous transfers of energy suppliers
An erroneous transfer occurs when your electricity or gas is switched to a new supplier without your permission.
Although this sounds serious, it is a common scenario that is usually just an administrative mistake that your supplier can reverse.
This guide explains erroneous transfers, how to spot them, and the steps required to resolve them.
What is an erroneous transfer?
An erroneous transfer occurs when a supplier on-boards a new customer based on an invalid domestic or business energy contract.
An erroneous transfer is a switch that is initiated by an unauthorised person not on the following list:
- An owner-occupier of the property using the electricity/gas.
- A tenant of the property using the electricity/gas.
- A landlord who manages energy supplies to the building.
- A managing agent who the property owner has authorised to arrange the switching of an energy service.
- An authorised automatic energy switching service.
- An energy broker with a signed Letter of Authority permitting them to switch suppliers on behalf of their customer.
Why erroneous transfers happen
In most cases, erroneous transfers occur by accident rather than through deliberate action or fraud. Here are the most common reasons:
- Someone has provided the wrong metering point to an energy supplier when signing up, often by selecting the wrong address.
- A business has provided incorrect MPAN/MPRN information to a business energy broker.
- Inaccuracies in the association between addresses and MPANs/MPRNs for newly built properties.
- Inaccuracies in industry databases regarding the location of business electricity meters/commercial gas meters.
- A data entry mistake made by a supplier.
In these cases, a consumer may believe they are legitimately switching the energy supplier for their property, but have accidentally changed the supply of a neighbouring property.
What happens if your business is erroneously switched?
If an erroneous transfer has occurred at a property where your business is the account holder, you’ll receive communications indicating that the switch is taking place.
Here’s what to look out for:
- An unexpected welcome pack from a supplier you don’t recognise.
- An email or letter from your supplier confirming a switch to another supplier and explaining the process for your final bill.
- A business electricity bill or commercial gas bill marked “final bill”.
- An energy meter reading request from a supplier you haven’t heard of.
- The business energy monitoring portal on your supplier’s website stops working.
If you receive any of these warning signs, we recommend calling your supplier to understand why you’ve received them.
The next section explains how to resolve erroneous transfers for both business and domestic energy supplies.
How to fix an erroneous transfer
As part of their licensing conditions, domestic and business energy suppliers must follow a standard process to resolve erroneous transfers.
The following sets out a step-by-step process for reversing an erroneous transfer, including actions required by you and your energy supplier.
1. Report suspicion of an erroneous transfer
If you suspect that the supply of your electricity or gas has been transferred without your permission, contact the customer service department of your original energy supplier.
Your supplier will collect all the necessary information to investigate the issue.
2. Confirmation of next steps from your supplier
Within five working days, your supplier must respond in writing to explain:
- A summary of the situation and whether they agree it is an erroneous switch.
- An explanation of the actions they plan to take.
- An expected timeline for the issue to be resolved.
3. Your supplier investigates with the new supplier
Your supplier will initiate a formal investigation process with the new supplier by either:
- Raising a switch objection if the switch is still in progress.
- Raising a withdrawal request if the switch has already been completed.
The new supplier will respond with details of the contract signed in respect of your MPAN/MPRN, explaining whether they agree that the switch was erroneous.
The suppliers will work together to agree whether the erroneous transfer should be reversed.
4. Confirmation of erroneous switch decision
Your supplier will contact you in writing to explain the conclusion reached regarding whether the switch of your energy supplier was valid.
If you disagree with the conclusion reached by the suppliers, it will be necessary to raise a complaint.
Visit our business energy supplier complaints page to learn more about this process.
5. Reversal of the erroneous switch
The suppliers will work together to process the reversal of the erroneous switch.
Your original supplier will be re-registered as the current supplier for your property.
6. Refunds and compensation
The energy suppliers involved in the switching error will work together to ensure that you are only charged once for each kWh of energy consumed during the erroneous switch.
Any overpayments made during this period will be promptly refunded.
If any compensation is due as a result of the erroneous transfer, it will be calculated and paid.
Compensation for erroneous transfers
The energy regulator Ofgem requires domestic energy suppliers to provide compensation when something goes wrong with the energy switching process, including erroneous transfers.
Compensation of £40 is due from your supplier in the event of an erroneous transfer. This is paid by the new supplier.
A further £40 in compensation is payable if there are delays in the process of reversing an erroneous transfer.
The new supplier will usually pay the compensation by sending a cheque to the affected property or via a bank transfer.
There is no standard compensation payable for erroneous transfers between commercial electricity or business gas suppliers.
How to prevent erroneous transfers
Erroneous transfers are common for both domestic and business energy consumers.
They are usually caused by the mistakes of others and can be difficult to avoid entirely, but the risk can be reduced through the following proactive steps:
- Act quickly on any indication of an erroneous transfer so the switch can be stopped while in progress, limiting the inconvenience.
- Avoid long-term Letters of Authority with brokers or switching platforms to retain control over business energy switching decisions.
- Avoid entering into verbal energy contracts to maintain a written record of the agreements your business makes.
- Carefully check MPANs/MPRNs when signing a business energy contract.
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