Energy News

Ofgem gives consumers ‘more muscle’

Tuesday, 20 October 2009

By Hazel Cottrell - hazel@consumerchoices.co.uk

New rules from gas and electricity regulator, Ofgem, will ensure customers are empowered to get the best energy deal.

Energy regulator Ofgem (www.ofgem.gov.uk) has introduced a new package of rules and “standards of conduct” which it says will empower energy customers.

The measures address problems uncovered in Ofgem’s October 2008 Energy Supply Probe, and include the following:

• Introducing tougher rules on doorstep selling (from tomorrow).
• Making suppliers provide clearer information on energy bills, to help customers compare tariffs (from July 2010).
• Helping low-income and other vulnerable customers switch to better energy deals. This includes allowing pre-payment meter customers to switch suppliers while carrying up to £200 debt from their previous supplier (from January 2010).

Andrew Wright of Ofgem said: “As each measure comes into play, consumers will be armed with better information and protection. That will give them more muscle to put a greater competitive squeeze on the suppliers.”

Ann Robinson, director of consumer policy at uSwitch, said: “The groundwork laid by Ofgem is solid, but not the real hard work begins. The regulator now has to ensure that suppliers are adhering to the code of conduct it has set out.”