Energy price rises to be advised sooner

Energy suppliers currently have 65 days to tell customers about gas and electricity energy price rises but the Government will be ensuring that suppliers have to advise on these increases sooner.

Ofgem, the energy regulator, is to urgently review the rules and will be seeking to reduce the time suppliers have to notify customers of the energy price increase down to 10 days.

Whilst energy suppliers have always been told that they should advise customers of price increase before they happen, rarely does this happen.

Under current Ofgem rules, once a customer is told of an energy price rise they have 20 working days to switch energy supplier to avoid paying the higher rate.

The Government is determined that the change will go through. As Joan Ruddock, Energy and Climate Change minister, comments “Energy price hikes are difficult at the best of times. But it is utterly unacceptable that people might not be told for up to 65 days that they are paying more for their energy. Energy companies have got to be fair to customers, and if they aren’t and if Ofgem can’t fix it, then we will.”

Which? chief executive Peter Vicary-Smith said: ‘We’re pleased that the government agrees with us that the current rules are completely unfair on consumers and that Ofgem has taken the lead by deciding to consult on the issue.

‘It’s outrageous that currently energy suppliers can keep their customers in the dark over a price hike for so long.’

The announcement from Ofgem is also supported by Ann Robinson, Director of Consumer Policy at uSwitch.com, although she cautions “Tighter rules would allow consumers to enjoy greater clarity and transparency, however it’s also important that the rules are easy for suppliers to implement”.

She adds “Consumers should make sure they review their energy bills regularly to make sure they are on the best value deal for their needs.”