New bill arrears rule restricting electricity consumer switches

Several thousand electricity consumers were blocked from switching suppliers in September, a trend that has continued this month, following a rule revision enabling suppliers to stop their customers from switching to rivals if they have not fully settled outstanding energy bills, suppliers have informed energypress.

Distribution network operator DEDDIE/HEDNO implemented the new rule at the beginning of September following a request by RAE, the Regulatory Authority for Energy.

Though suppliers have sought closer monitoring of outstanding electricity bills linked with consumers preparing to switch companies, the new rule’s level of strictness is believed to even be impeding the mobility of punctual consumers with small and unintentional arrears left to pay.

Suppliers are now concerned about the measure’s impact on competition as even the smallest of bureaucratic obstacles can be enough to deter consumers from switching energy companies.

Consumer switches, both from power utility PPC to independent suppliers and from one independent firm to another, are currently high and would be even higher if the new restriction were not imposed, company officials noted.

Suppliers have protested that the rule revision was not preceded by public consultation.