Energy News

Energy bills: Energy companies face tougher rules on price rises

Energy firms may have to warn customers they’ve put prices up within 10 days of the change rather than the current 65 days.

Energy regulator Ofgem is seeking to cut the 65 day limit to 10 days, for energy firms to warn their customers that the cost of their energy has risen.

Ofgem is to start a consultation into the time limits energy suppliers have to tell customers about price rises after complaints from consumer groups.

Ofgem explained a number of energy providers are waiting 65 days to tell customers after price increases, although some providers tell their customers much more quickly.

A Scottish & Southern Energy (SEE) spokesperson said: “Our customers are told about price increases straight away. It is done very, very quickly and we write to customers directly.”

EDF Energy explained any price changes are communicated to the press as soon as a decision is made.

An EDF spokesperson said: “This is alongside other methods, such as the customer’s next bill, emails and letters by post, which on several occasions have been sent out prior to the effective date of the price change.”

She added the range of methods to communicate with customers means the point at which a customer is first informed of a price change can vary.

However, for many customers the first they hear about a price change is on their gas and electricity bills.

Christine McGourty, director of energy industry trade body Energy UK, said: “Most customers are advised of a price change within weeks, but the 65 day notice period allows companies to communicate with all customers in the most cost effective way – via their bill.

“Bills remain the main form of contact between a customer and their supplier. If customers are not happy for any reason, they always have the option to switch supplier or tariff to avoid any unwanted price changes.”

Changes following consultations could come in by the end of summer. Under the existing rules, if your gas or electricity provider increases prices, it must also tell you about the right to switch providers and avoid and backdated increase.