Energy News

Energy suppliers must give 30-day warning on price hikes

Thursday 31 March, 2011

By Martin Fagan - news@consumerchoices.co.uk

Energy regulator Ofgem is forcing energy suppliers to give customers 30 days warning before they raise their prices.

Energy suppliers planning to hit hard-pressed Brits with yet more price increases must give Brits 30 days warning, according to regulator Ofgem.

At the moment, energy suppliers can increase prices without notice and only have to notify consumers of price increases three months after prices go up.

Last week, Ofgem announced proposals for forcing energy companies to be more transparent and end complex tariffs which confuse customers.

The watchdog says 30 days advance notification of price increases will give consumers more power to switch to a better deal in time.

This new 30-day rule also applies to any changes to a contract which will leave the customer “significantly worse off”. When energy companies inform individual customers of these changes, they must explain how it will affect them specifically.

The changes come into effect on 28 April 2011.

Commenting on the 30-day rule, Audrey Gallacher, head of energy at watchdog Consumer Focus, said: “If people are going to pay more for their energy, they need to know about price increases in advance, not three months later.

“This long-awaited move should help customers make informed decisions early on about whether to switch supplier.