In the News - Energy Providers

Ofgem to bring in new rules on direct debit payments

In a follow up to its investigation into the setting of direct debit payments, the energy regulator Ofgem has decided to introduce new rules to boost consumer confidence in paying by direct debit. Ofgem's investigation into direct debits ('In the News' on 27 Mar 09) did not find evidence that the major energy providers were over-charging , but it did find that they were not good at communcating with customers about how they handle the payments. The new rules mean providers will have to explain accurately and clearly how they have set up direct debits and be able to justify to the customer concerned when they decide to hold on to a credit surplus. Ofgem hopes to have these new rules in place in time for winter.

Ofgem also announced that its proposals to ban unjustified price differences will come into force on 1 September 2009 (last reported 'In the News' on 12 Jan 09). Amongst other things, this will stop providers from charging more for prepayment meters and discriminating against customers who do not have gas.

Ofgem's other ongoing set of proposals designed to make it easier for consumers to understand and compare the energy market ('In the News' on 23 Mar 09) are in the final stage of consultation.

(Sources: Ofgem.gov.uk)

AdviceCentre note: if you are having an issue with an energy supplier, take a look at Plebble's guide to How to complain about your energy provider.

Posted by Plebble Admin at 09:47 on 10-Aug-2009