Customers will receive £30 in compensation if their energy supplier does not complete a request to switch to another firm within five days, regulator Ofgem announced today.
Currently, energy suppliers have five days to complete a switch but do not pay compensation until 15 days have passed.
Ofgem said that after consulting with consumer groups and charities, this grace period for suppliers is being reduced to five days.
The new rule comes into place from 1 April.
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 customers to take control of their energy bills this winter and beyond.”