Energy Guides

Erroneous transfers in business energy

In business energy, typically only the account holder (the business or person responsible for paying energy bills) can choose to switch suppliers.

An unfortunate situation can arise when a supplier switch occurs without the account holder’s permission or knowledge. This is known as an erroneous transfer.

We’ve published this helpful guide explaining erroneous transfers, along with advice on resolving the situation if it happens to your business.

What is an erroneous transfer?

An erroneous transfer occurs when the electricity or gas supplier of a commercial property is switched without the account holder’s permission.

Only the following parties have the authority to switch the energy supplier of a commercial property:

A tenant who is responsible for paying the business energy bills.
The landlord, if they manage the energy supplies to the building.
A managing agent who is explicitly authorised by the property owner.
A business energy broker with a signed Letter of Authority permitting them to switch suppliers on behalf of their customer.

An erroneous transfer happens when a business energy switch is arranged by a party not included in this list.

How do erroneous transfers happen?

Most erroneous transfers occur by accident rather than through deliberate action. Here are the typical reasons:

Someone else has confused your supply details with theirs when signing up with a new business energy supplier.
When a new property is built, the MPRN/MPAN registration details may have been recorded inaccurately. This is a common scenario for large properties containing numerous gas and electricity meters.
A computer system error by a licensed business energy supplier.
An error in the national database of electricity and gas supply points.

Signs your business has been erroneously transferred

The first indication that an erroneous transfer has occurred is usually a communication from your current electricity or business gas supplier.

You’re likely to receive:

A query from the customer service department informing you that someone has requested to switch your supply.
A “sorry you’re leaving” email or letter from your supplier.
A final bill that you haven’t requested.
A welcome pack from a different supplier.

What to do if your business is erroneously transferred

If you believe an erroneous transfer has been initiated for a property where you are the authorised account holder, we recommend contacting your existing supplier’s customer service department as soon as possible.

Your supplier may ask you to provide the following documents to prove that you remain the authorised account holder associated with the property:

A photo of the business energy meter.
A copy of your lease agreement.

How are erroneous transfers resolved?

Once an erroneous transfer has been reported to a licensed business energy supplier, it can be resolved in one of two ways, depending on the status of the switch:

Switch in progress – Your supplier will raise an objection to pause the switching process. During this pause, both suppliers will work together to determine whether the switch is erroneous.
Completed switch – Your supplier will contact the new supplier. The suppliers will collaborate to determine if an erroneous transfer has occurred. If they agree, they will process a reversal of the original switch.

Resolving an erroneous transfer can take up to 12 weeks, but it will not result in any interruption to your electricity or gas supply.

During the process, billing and statements for your business may be paused, with a catch-up bill issued after the matter is resolved.

Can my business get compensation for an erroneous transfer?

According to Ofgem rules, customers automatically receive £40 in compensation for erroneous transfers and other switching issues in the domestic energy market.

However, since such compensation would make little difference to most businesses, this rule does not apply to business electricity rates or business gas prices.

How to prevent an erroneous transfer

Erroneous transfers usually happen accidentally and can occur for a variety of reasons. However, we recommend three steps to minimise the likelihood of an unauthorised energy supplier switch:

Use a Letter of Authority cautiously – Some Letters of Authority (LOAs) used by energy brokers give the broker the right to arrange switches on your behalf. We recommend only signing this if you trust your broker and the LOA has a limited validity period.
Monitor your bills and supplier communications – Staying on top of your bills and communications from suppliers will help you identify any erroneous transfer issues early, making them easier to resolve.
Avoid verbal contracts – In the commercial energy market, verbal agreements are binding. We recommend always requesting a written quote and contract to help you keep track of any new agreements with energy suppliers.