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The CMA will put a six-month timescale on reforming the Debt Assignment Protocol (DAP), giving suppliers until the end of 2016 to transform how debts are transferred when prepayment customers switch suppliers.
The provisional decision from the Competition and Markets Authority’s investigation requires suppliers to “take appropriate steps to ensure that changes to DAP are implemented” by the end of 2016.
Under the current protocol, suppliers can refuse transfer of a customer if they owe more than £200, and object by default to an indebted PPM switch on the grounds of debt.
Switches can also be objected unless the new supplier is willing to take on the debt. In 2013 Ofgem called for barriers to switching for indebted customers to be removed.
By April 2015, ten suppliers had taken voluntary steps to change how they operate the DAP including the big six, First Utility, Ecotricity, Spark Energy and Utility Warehouse, according to Energy UK.
The CMA report said companies must ensure changes to the DAP – such as setting out of clear objectives and a timetable with appropriate milestones – are taken to ensure delivery of these changes.
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