Two energy suppliers questioned over suspect pricing methods
Two energy companies are being investigated over allegations of
unfair pricing.
Ofgem, the energy regulator, is grilling the two suppliers after
suspicions were aroused that they were overcharging customers. The
companies may be in breach of rules in place since September to
ensure that providers do not levy any unfair premiums and that
their pricing reflects the costs they incur.
One of the companies is being quizzed over why their prices are
higher in an area of the country where they have less competition.
Ofgem has railed against "undue price discrimination" and
introduced measures designed to safeguard certain consumers against
being charged more without good reason. The other firm faces
inquiries over their standard tariff pricing.
The companies will not be named unless evidence of wrongdoing is
discovered and an official investigation is launched, Ofgem
explained, stating that "we do have concerns over some premiums and
have made it clear to the two suppliers concerned that we will take
action if the differentials cannot be justified".
The news comes on the same day that new rules from Ofgem come
into force regarding the information supplied on energy bills.
These obligate energy companies to provide clearer information
on tariffs and pricing on regular energy bills, in addition to
requiring them to send out annual statements to customers
explaining how much they have been paying and why, as well as
providing advice on switching supplier.
Ofgem has announced that the previous regulatory measures
introduced back in September have resulted in lower prices for the
majority of householders - with, for example, the average annual
premium for those using pre-payment meters falling from £111 to £69
- and these new requirements on billing information are hoped to
put control and choice back into the hands of consumers.
"We want customers to have a much better picture of their energy
consumption and how much they are spending," said Sarah Harrison of
Ofgem. "Clearer bills and annual statements will put all this
information at their fingertips so they can compare energy deals
more easily when they are thinking of switching".
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