An erroneous transfer is when a business’s electricity or gas supply is switched to a different supplier by mistake, or without authorisation. Our expert guide explains what an erroneous transfer is, why it happens, how to promptly spot one, and how the correction process typically works.
What is an erroneous transfer?
An erroneous transfer is a mistaken or unauthorised switch of a gas or electricity supply point to a new business energy supplier.
It can happen for various reasons, such as someone else confusing your supply details with theirs, signing up with an incorrect MPAN or MPRN, a system input error by a broker or supplier, or a change made by an unauthorised party.
Fixing it involves contacting the new or previous supplier, giving evidence for the erroneous transfer, arranging the supply to be returned to the rightful supplier, and correcting any erroneous bills.
How do you know if your business has been transferred by mistake?
An erroneous transfer usually comes to light through unexpected correspondence or changes to billing. These signs need checking, both to confirm what has happened and to rule out scams designed to obtain payment details.
Signs that suggest an erroneous transfer
The following are indications that an erroneous transfer may be happening:
- Letters or emails from an unfamiliar supplier: A welcome pack, switch confirmation or request for a meter reading from a supplier the business never signed up with.
- A final bill from the current supplier: A closing statement, or notice that the supply is being transferred away, without the business having asked to switch.
- A bill from an unknown supplier: Charges for a supply from a supplier the business has no contract with.
- Missing data in the supplier’s portal: A supply disappearing from the current supplier’s online account, or smart meter data no longer showing.
- Mismatched meter details: An MPAN, MPRN or meter serial number on a bill that does not match the meter at the property.
Confirming it is actually an erroneous transfer
Not every unexpected switch is a mistake. Someone with authority, such as a director, landlord, head office or a broker with a Letter of Authority, may have arranged it without the person who noticed being aware, or the correspondence may be a scam designed to obtain payment details.
Before taking action, the business should:
- Check the details match: Compare the address, MPAN or MPRN, and meter serial number on the correspondence against a recent bill.
- Ask internally: Confirm whether anyone with authority agreed to switch business energy suppliers. If a broker arranged it, ask for a copy of its Letter of Authority to check it was valid and covered the affected supply. A switch arranged by anyone else is an erroneous transfer.
- Contact the incumbent supplier: Ask whether it still supplies the meter and whether a transfer is pending.
Can an erroneous transfer be stopped before it completes?
Yes, a business can stop a switch it did not agree to by contacting the incumbent supplier before it completes, which is quicker and simpler than reversing it afterwards.
A switch is complete once the supply is registered with the new supplier on the switch date. After that, the supply needs to be returned to the previous supplier through the erroneous transfer process.
A welcome pack or a “sorry to see you go” letter usually arrives before the switch date, while a bill from the new supplier usually means the switch has already completed.
Why do erroneous business energy transfers happen?
Most erroneous transfers are caused by errors in identifying the right supply point, rather than deliberate wrongdoing. The most common causes are:
- Incorrect MPAN or MPRN: A mistyped number, or the wrong meter chosen from a list, means the switch is applied to a different supply from the one intended.
- Incorrect property or address details: Multi-occupancy buildings, business parks, and new, split or merged units often have similar or outdated addresses, making it easy to select the wrong supply.
- Landlord and tenant changes: Landlords often take over supplies between tenancies, so a switch arranged by a landlord or a new tenant can overlap with an existing contract.
- A new business moving in: A business moving into new premises may arrange a contract using details from the previous occupier, or for the wrong meter, leading to a switch on a supply it does not use.
- Broker errors: Mistakes made when supply details are entered on a business’s behalf.
- Switches arranged without authority: An employee who is not authorised to sign contracts, or a broker acting on an expired or invalid Letter of Authority, arranging a switch the business never approved.
- Administrative or industry-data errors: Supplier processing mistakes, or meter exchanges and address changes not updated in industry databases, can link the wrong meter to a premises.
What is the difference between an erroneous transfer and a disputed energy contract?
Both situations involve a business being supplied by an unintended supplier, but a disputed contract is more complex to resolve.
In an erroneous transfer, no valid contract exists for the affected supply, either because the wrong supply was switched, or because the switch was arranged by someone without authority. The resolution is to return the supply to the previous supplier and cancel any incorrect charges.
In a disputed contract, the supplier believes the business formally agreed to a contract, so solving the issue requires the business to challenge the contract itself.
Here are the key differences:
What should you do after an erroneous business energy transfer?
Once a business has identified that a supply was transferred in error, we recommend the following process to resolve the issue:
- Report it straight away: Contact either the new or previous supplier, and ask it to start the erroneous transfer process. The sooner it is reported, the less billing there is to correct. Follow up any calls with an email, so there is a written record of the request.
- Provide the supply details: Share the MPAN or MPRN, the supply address, a recent bill from the previous supplier, and any correspondence from the new supplier.
- Prove the business is the account holder: The supplier may ask for evidence, such as a copy of the lease and a dated photo of the meter reading.
- Do not pay the new supplier: Avoid paying bills from any supplier the business never agreed to use, and check that any Direct Debit set up with it is cancelled.
- Keep records: Note the date of each contact, the name of the person spoken to, and any reference numbers, as these are needed in the rare case an erroneous transfer has to be escalated.
- Escalate if it is not resolved: If the issue has not been resolved after eight weeks, make a formal complaint and, for micro and small businesses, take it to the Energy Ombudsman.
Which supplier should you contact about an erroneous transfer?
Either the previous or new supplier can start the process. Contacting the previous supplier is often the simplest option, since it already holds the business’s account details and has the strongest interest in getting the supply back.
How long does an erroneous transfer take to fix?
If the switch is still in progress, the incumbent supplier can usually stop it quickly. Once the switch has completed, the suppliers work together to confirm the error and return the supply, which typically takes up to 12 weeks, with no interruption to the supply.
There is no regulated timescale for business supplies, so if the process stalls, raising a formal complaint is the best way to move it along.
What happens to your existing energy contract when there is an erroneous transfer?
If a business is on a fixed energy contract, its current supplier can object to a switch until the contract ends, so most erroneous transfers are blocked before they go through.
They are more likely to complete on out-of-contract or deemed contracts, where there is no fixed term to object on.
Either way, the business never agreed to end its existing contract, so the contract normally remains in place after the transfer is correct, with:
- Same rates and terms: The supply is usually returned to the previous supplier as though it had never left, on the same rates and terms.
- Same end date: The erroneous period does not shorten or extend the contract, so it still ends on its original date.
- No exit fees: Since the business did not choose to leave, it should not be charged for ending its contract early.
- Out-of-contract rates if the contract has expired: If the contract was due to end during the erroneous period, the supply may return on the previous supplier’s out-of-contract rates. If so, take the opportunity to compare business energy prices to find a competitive new contract.
Who bills for energy used during an erroneous transfer?
The bills a business receives depend on when the erroneous transfer is caught:
- Before the switch completes: The supply stays with the previous supplier, so the new supplier does not issue any bills.
- After the switch completes: The new supplier may bill for the energy used, but these bills are cancelled and any payments refunded once the error is corrected. The previous supplier then issues a catch-up bill covering the whole erroneous period.
How to complain about an unresolved erroneous transfer
If an erroneous transfer is not being resolved, a formal complaint gives the business a clear route to escalate it:
- Make a formal complaint to the supplier: Write to the supplier handling the transfer, stating clearly that it is a formal complaint, and include the supply details, dates of previous contact and any reference numbers.
- Wait for a response or deadlock letter: The supplier will try to resolve the complaint, or may issue a deadlock letter confirming it cannot do so.
- Escalate to the Energy Ombudsman: If the complaint is still unresolved after eight weeks, or a deadlock letter has been issued, micro and small businesses can take it to the Energy Ombudsman for free, within 12 months of the deadlock letter.
Larger businesses cannot use the Energy Ombudsman, so if the supplier does not resolve the complaint, the main option is to seek legal advice. Micro and small businesses can also get free support with their complaint from Citizens Advice.
How a business can prevent an erroneous transfer
A few simple steps can reduce the risk of an erroneous transfer:
- Check supply details on new contracts: Make sure the MPAN or MPRN and supply address on any quote or contract match previous correspondence about your energy supplies.
- Manage signatories: Make sure staff know who has authority to agree energy contracts on the business’s behalf.
- Use Letters of Authority carefully: Only sign one with a trusted business energy broker.
- Avoid verbal contracts: Business energy contracts agreed over the phone can be binding, so always ask for a written quote and contract before agreeing to a switch.
- Monitor bills and supplier correspondence: Spotting unexpected letters or changes early makes an erroneous transfer much easier to stop before it completes.
Erroneous transfer FAQs
Our business energy experts answer commonly asked questions regarding erroneous transfers:
Can an erroneous transfer affect just one meter at a multi-meter site?
Yes, erroneous transfers typically happen at the level of an individual supply point, so a single MPAN or MPRN can be switched while the business’s other meters remain with their existing supplier.
Each affected meter needs to be checked and reported separately.
Is a Supplier of Last Resort transfer an erroneous transfer?
No, when a supplier goes out of business, Ofgem appoints a “Supplier of Last Resort” to take over its customers.
The transfer happens without the business’s agreement, but it is legitimate, so the supply continues as normal and the business should contact the new supplier to confirm its terms.
Can an erroneous transfer affect my business credit record?
The transfer itself should not. However, ignoring bills from the new supplier, rather than disputing them, could lead to them being chased as unpaid debt. This can be prevented by contacting the supplier as soon as possible to explain the switch has been made in error.
What if I don’t know who currently supplies my business?
The current supplier is the company that sends you business electricity bills or business gas bills. Businesses that have recently moved in can ask the landlord or previous occupant, who supplies the property.
Otherwise, the supplier can be found using the meter details. For gas, the Find My Supplier service shows which supplier is registered to a meter point. For electricity, your local Distribution Network Operator can confirm the registered supplier.
Can businesses get erroneous transfer compensation?
Not automatically. Ofgem‘s Guaranteed Standards of Performance, which require suppliers to pay automatic compensation when a switch goes wrong, only apply to domestic customers.
A business that has incurred costs or disruption can still raise a complaint with the supplier responsible and request compensation.
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