Alex Dickson, head of research at Switchcraft.co.uk, commented: “The regulators decision to move ahead with automatic compensation is a massive win for consumers, and ultimately the UK energy industry as a whole.

“New rules are a much needed warning to suppliers, whose handling of switches and customer energy accounts has dented consumer confidence.

“Nearly 12,000 supplier-initiated switches in 2018 were the result of either ‘misleading information’, ‘suspected fraudulent marketing’ or ‘training issues’. Suppliers now have an incentive to fix these types of problems once and for all.

“A healthy and competitive energy market was never going to flourish without a properly functioning switch market.

“Today’s announcement shows OFGEM is prepared to guarantee the consumers right to access fair energy deals on a timely basis – as well as punish those companies that don’t deliver on this promise.”