Are you ready? Top 5 questions for the 24-hour supplier switching compliance.

The 24-hour switching regulation is one of the ways to make suppliers even more customer-centric. Another, more global reason – when they say “We want to promote energy transition”, they really mean it. 

It’s the reality of an existing energy landscape that we all need to adapt to and to have success in.

The regulatory requirement for 24-hour supplier switching is part of Directive (EU) 2019/944. Consumers need to be allowed to switch electricity suppliers within 24 hours, which removes the need for long notice periods, manual processes, or unreasonable contract restrictions.

The competition is getting fierce since new market entrants appear with innovative service offerings.

 Are you ready to compete? First, you need to comply, meaning your internal systems need to be ready for a 24-switching. 

As MaxBill is already helping energy suppliers handle the MHHS program compliance, we’ll gladly outline what it takes to get ready for this regulatory requirement. 

Here are the top 5 questions to help you assess and accelerate your readiness for the 24-hour switching rule.

1. When is the deadline for the 24-Hour supplier switching?

• Germany: From June 6, 2025
  
• Rest of EU: From January 1, 2026
  
• UK: Not applicable (Brexit)

2. What internal systems are involved in the 24-hour supplier switching?

CRM and billing, in the first place.

First, you need to make sure your systems enable near-instant verification of customer identity and contract status, as well as outstanding bills or settlements.

Speaking of billing, make sure you can deliver hourly/dynamic pricing, handle 24–48 data points per day per customer, and scale with this data load.

Second, build robust, secure, and automated API connections to national switching platforms. Automate workflows to minimize manual intervention and speed up processing.

Third, your consumers must access hourly or half-hourly data.

Fourth, ensure digital access. Of course, some of your customers are not tech-savvy, and some are. Make sure you communicate with them where they are. The Web portals like MaxBill Self-Care and mobile app are key here. 
MaxBill delivers an AI-driven Self-Care Portal for even more enhanced customer experience.

3. What happens if suppliers don’t comply with the regulation?

The failure to meet the switching requirement could result in:

• Regulatory penalties imposed by national energy regulators (e.g., BNetzA in Germany)
  
• Loss of license or market access in non-compliant jurisdictions
  
• Reputational damage, especially if customers experience delays or failed switchovers.

4. What are the recommendations from MaxBill to comply with the 24-hour switching rule?

1. Gap Analysis and Readiness Assessment

• Audit current CRM and billing capabilities against 24h switching and smart metering data handling requirements
  
• Identify gaps in:
  
  • Near-instant customer data verification
    
  • Automated integration with national/EU switching platforms
    
  • Handling of high-frequency consumption data (24-48 data points/day)
    
  • Digital self-service delivery (web/mobile)

2. Technical enhancements

• Develop or optimize real-time data validation workflows for instant switching approvals
  
• Build robust API integrations with national/EU supplier switching systems to ensure automated and reliable data exchange
  
• Upgrade data processing infrastructure to handle high-volume time-stamped consumption data
  
• Enhance SelfCare portals and mobile apps for customer access to granular consumption data

3. Compliance and testing

• Engage with regulatory bodies or switching platform operators for sandbox testing
  
• Run pilot projects to simulate switching processes under the 24-hour rule
  
• Validate billing accuracy and data integrity with hourly/dynamic tariff scenarios

4. Customer communication and training

• Educate utility clients on the benefits and changes related to 24-hour switching and smart metering
  
• Train internal teams to handle new processes and customer inquiries efficiently

5. Ongoing monitoring and updates

• Implement monitoring tools to track switching performance metrics and customer satisfaction
  
• Keep abreast of evolving regulations and technology standards for future-proofing
  

5. How does MaxBill help you get ready for the 24-hour customer switching requirement?

The top 9 facts you need to know of how MaxBill gets you comply with the rule:

1. Instant data verification via CRM:
   • MaxBill’s integrated Customer Management System enables near-instant validation of customer identity, contract status, and credit history, which is critical for ensuring supplier switches are completed within 24 hours.
   • Supports automated checks for outstanding balances or billing conflicts that might block a switch.
2. Automated workflow for switching processes:
   
   • MaxBill can be configured with automated switching workflows (including cancellation, new enrollment, and data exchange), reducing manual intervention and accelerating the process.
     
   • Fully supports process orchestration for both inbound and outbound switching events.
     
3. Integration with national and European switching hubs:
   
   • MaxBill’s open API architecture facilitates seamless integration with national supplier switching platforms (e.g., Germany’s market communication formats like UTILTS, ORDERS, IFTSTA).
     
   • Helps utilities comply with national format standards and messaging protocols.
     
4. Dynamic tariffs and time-based billing support:
   
   • Fully supports hourly or half-hourly billing based on smart meter data — essential for markets moving to dynamic pricing under Article 19 & 20.
     
   • Can handle high-frequency usage data (24–48 intervals/day per customer) and generate accurate bills using time-based rates.
     
5. Real-time synchronisation with smart meter data:
   
   • Integrates with meter data management systems (MDMS) for real-time or batch imports of consumption data.
     
   • Enables accurate proration when a switch happens mid-billing period.
     
6. Self-care portal for consumer transparency:
   
   • MaxBill’s Self-Care portal allows customers to track their switching status, view real-time consumption data, and access historical billing, improving transparency and reducing service calls.
     
7. Audit trail and regulatory reporting:
   
   • Maintains full audit trails for all switching events, ensuring traceability and regulatory compliance.
     
   • Generates compliance reports for national regulators, documenting SLAs, switching times, and exceptions.
     
8. Phased implementation and modular delivery:
   
   • MaxBill allows gradual implementation of changes (e.g., switching automation, format adjustments), helping suppliers meet deadlines while managing internal resource loads.
     
   • Matches the phased delivery model like that of Powercloud.
     
9. Change management and business process adaptation:
   

MaxBill’s Business Process Management (BPM) tools allow utility companies to redefine switching workflows, approvals, and exception handling to align with new regulation timelines.

MaxBill meter reading and billing to help comply with the 24 hour supplier change

The best practices to fully adhere to the regulatory requirement

Below are go-to practices that can work efficiently in your organisation:

• Adopt an iterative approach to system development
• Prioritize changes that directly impact key business processes to ensure that critical functionalities are tested and implemented early, allowing for adjustments based on ongoing feedback and testing
• Focus on enhancing CRM systems for real-time customer data verification and updating billing systems to support dynamic tariff structures
• Advocate for phased delivery of system updates in collaboration with customers
• Conduct comprehensive testing to validate system functionalities, data integrity, and compliance with regulatory standards
• Provide training programs and support materials to educate staff on new regulatory requirements and system changes
• Establish monitoring mechanisms to track compliance metrics, switch completion rates, and customer satisfaction post-implementation.