In the News - Energy

Ofgem announces proposals to empower the consumer

Following a consultation on unfair price discrimination (reported in 'In the News' on 12 Jun 09), the energy industry regulator, Ofgem, has announced their proposals. The proposals reach beyond the original issue of price discrimination and are more widely designed to give more information and power to energy customers. Ofgem hopes to finalise the proposals by July so they can implement the new rules by Autumn, in time for winter.

Under the proposals, energy providers will have to:

a. justify charges for different payment methods

b. provide a standardised, annual statement with tariff name, consumption and charges for payment method

c. give simplified information on tariffs, including an at-a-glance price score card to help consumers when switching

d. provide written quotations following doorstep sales and in the case of prepayment meters, written proof that the deal they are offering is better than the customer's existing one

e. ensure when they sell a product or service, that it is appropriate and that the customer fully understands what they are buying

f. not change anything about a customer’s product or service without clearly explaining why

g. not prevent a customer from switching product or supplier without good reason

h. not offer products that are unnecessarily complex or confusing

i. make it easy for customers to contact them and act promptly and courteously to put things right when they make a mistake.

(Sources: Ofgem, Guaridan.co.uk)

AdviceCentre note: for more information and advice, take a look at Plebble's Guide to Energy Providers and Plebble's Guide to How to Complain about your energy provider.

Posted by Plebble Admin at 11:22 on 23-Mar-2009