Reasons for Objections from an Energy Company

Have you wanted to switch energy company, but been blocked? Want to know the reasons behind objections? Or what to do since you’ve been rejected to switch?

Well, this article will cover all the bases when it comes to energy supplier objections.

Ofgem has been clamping down on the energy suppliers that have blocked customers from switching to rival companies for cheaper deals. Customers understandably want the best deal for their energy, but energy companies don’t want them switching to competitors.

So, let’s dive in and talk about objections.


What Is An Objection?

Firstly, we should look at what an objection actually is.

For customers looking to switch their energy to a new company, their current energy supplier may be able to ‘raise an objection’. This will stop the switch happening, forcing the customer to stay with their current energy provider.


What Are The Reasons For An Energy Company To Object A Switch?

So, you’re wondering what are the reasons that energy providers will object customers from switching to a new supplier.

If your energy supplier objects to your switch to a new supplier, they will provide a reason why they have blocked your transfer, along with ways to resolve the issue they have.

The main reason will be an outstanding balance.

Some customers may have an outstanding balance on their account. This will allow the existing energy supplier to block any moves to other suppliers until the balance is paid.

For outstanding debts that have been owed for 28 days or more, energy suppliers can block any transfers to a new company until the debt has been paid back. To help customers pay off debts, the supplier may place the customer on a prepayment meter.


How Much Debt On A Prepayment Meter Before You Can Switch Supplier?


Customers that are already on a prepayment meter can switch energy suppliers if there is a debt of over £500 for electricity and/or £500 for gas.

Once the switch has happened, the customer is required to ask the new provider to transfer your supply as well as the existing debt. This is named the ‘Debt Assignment Protocol’.

If the money has been owed for under 28 days, customers may still transfer to a new supplier, but it must be noted that this debt will not magically disappear. It will be calculated and added to your final bill with the existing supplier.

For customers that have decided to switch due to their existing supplier increasing their prices, they will have 30 days to pay back any debts before the energy supplier can block the transfer.


More Reasons Why Energy Suppliers May Object A Switch

There are some other reasons why energy suppliers will object to a move, such as:

  • Fixed contracts – For customers that are on a fixed-term contract, they may have to wait until the contract has expired until moving to a new supplier, therefore an objection may occur.
  • Notice time – There are energy suppliers that may stop a transfer to a new supplier if the customer didn’t give the energy provider enough notice to terminate the current contract.
  • Contract terms – There may be terms in your contract which prevent you from moving to a new supplier within a certain time frame. It is important to understand your energy contract when you sign it.

Some other reasons for an energy supplier objecting to your transfer include:

  • Customers on an unsupported meter – For any customers that have a prepayment meter, economy 10 meter or economy 7 meter installed, they may not be able to transfer to a new supplier if they don’t have contracts to support the meter. They may need to have a new standard meter installed which the new supplier could charge for.
  • Customers living in rented properties – For any customer that live in shared or rented accommodation, there could be problems with switching without permission from the owner of the property, or whose name is responsible for the energy bills.


Will My Energy Supplier Let Me Know If They Object My Switch?

Yes, your existing supplier should let you know if they have decided to object to your transfer. The provider must contact you as soon as possible as it is in the terms of their license. When they contact you, they’ll advise you of the following information:

  • The reason for their objection.
  • Ways you can resolve the objection which will allow you to remove their objection and go ahead with the switch.

Are There Ways An Energy Supplier Cannot Object My Energy Switch?

Switching energy supplier can be an easy process. After an agreement has been made for a new deal, within 17 days you should be up and running with your new energy supplier.

However, with these objections, it can be a frustrating time for many customers. There are some reasons that energy supplier cannot block a switch to a new provider.

Energy providers cannot object to a transfer for the following reasons:

  • No contract – If there is no contract in place, an energy company cannot object to a transfer. The no-contract examples include; customers that haven’t signed up and agreed to a contract with the energy supplier, customers on a deemed rate contract and customers whose contract has fully expired.


What If My Supplier Is Still Objecting My Switch?

After reading through the reasons why an energy supplier will object to your switch and none of the points still apply to you, then a complaint must be made.

You will find the contact details on your supplier’s website, with most having a complaint section. Ofgem is working to remove these issues, however, when it comes to automatic switching, there are still some problems for customers.


Which Energy Suppliers Are Easiest To Leave?

The Business Juice, an online business energy website has compiled an ‘Ease to Leave survey’. This survey dives into the analysis of how energy suppliers differ when it comes to preventing a customer from switching providers.

Unfortunately, this survey is dated, with the analysis of sales coming between March 2014 and January 2015. By now, the energy companies may have changed their policies, for better or worse.

So, how does this survey work?

Well, The Business Juice state that ‘ease of leaving a supplier is represented by, in percentage terms, the propensity for objection to be raised against an application to leave the supplier.’

They also say that having a poor rating doesn’t represent the supplier as ‘undertaking anything untoward’ when it comes to preventing a customer from transferring their supplier.

The majority of objections are in accordance with rules and are completely legitimate.

So, when it comes to energy suppliers, back in 2015, who was the easiest to leave?

As we’ve found with many customer satisfaction surveys in the past, the independent energy suppliers come out on top. This is a common trend that can be seen even in 2021.

The ‘Which? Energy Companies Satisfaction Survey 2021′ placed independent energy suppliers as the top-rated companies, with the ‘Big 6’ taking the bottom positions.

Below is a table showing the results from the Ease to Leave survey top 6 positions.

RankSupplierJan-15Oct-14Jul-14
1Total Gas & Power0.0%16.6%N/A
2Corona Energy0.0%6.7%11.7%
3Hudson Energy0.0%N/AN/A
4Haven Power8.3%11.9%12.8%
5Gazprom Energy9.1%4.1%4.4%
6SSE12.3%8.2%8.1%

This table states that the suppliers listed offer the easiest method to leave your contract.

If you have abided by your contract terms and don’t have any outstanding debts, you will be a lot more likely to leave without any issues, allowing customers to take full advantage of the cheaper energy options on the market available at that point.


Which Energy Companies Are The Most Difficult To Leave?

We have seen which energy companies are the easiest to leave, but what about the more difficult energy suppliers?

According to the statistics, Opus Energy, BES, CNG and British Gas Business make up the bottom of the list.

Again, it should be stated that this survey is from 5 years ago, so many of these companies may have changed policies and you should research some recent reviews from these energy companies.

RankSupplierJan-15Oct-14Jul-14
15Opus Energy46.3%11.3%13.9%
14BES37.5%63.1%66.6%
13CNG20.8%13.2%13.9%
12British Gas Business20.8%28.5%30.0%

So, when we look at all the points in this article, what should we take away from this.

Key points to remember:

  • Before switching, make sure to pay off any outstanding debts to remove delays and the risk of being objected to.
  • If you’re on a fixed-term contract, ensure you’re not breaking the terms and transferring before the end date.
  • For customers who have been objected, but have abided by the terms of the contract, you should raise a complaint with your existing energy supplier.
  • Energy suppliers must give a reason for objecting to your switch, as well as ways that you can remove their objection.

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