By Lezanne Janse van Rensburg, 18th February
2010
Energy companies will soon be forced to inform consumers of any
price increases to their bills in advance, in accordance to
plans by the government and energy regulator, Ofgem.
The proposal, which was raised by Liberal Democrats' energy
spokesman Simon Hughes, will bring an end to the practice of only
informing energy consumers of price increases up to 65 days
after they have been brought in.
The highly contentious rule, which enables energy suppliers to
up their prices without informing consumers beforehand, will soon
be under discussion in an effort to find the best solution to close
the legal loophole.
Some of the proposed options include energy suppliers having to
inform customers of price rises prior to the actual increase, or
enforcing a new deadline which would require energy companies to
inform consumers within a few days.
The government has emphasised that the energy sector needs to
take the needs of their customers into consideration and act in a
fairer manner. "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 and Climate Change minister, Joan Ruddock, stated.
It is utterly unacceptable that people
might not be told for up to 65 days that they are paying more for
their energy.
Despite the fact that the decision could be vetoed by energy
companies, consumers have been assured that the final decision will
be in the hands of the government.
Peter Vicary-Smith of consumer group Which? applauded the
government's willingness to make the Energy Bill more consumer
friendly. "We are pleased that the government agrees with us that
the current rules are completely unfair on consumers," he said.
In response to the proposed amendment energy company
representative, Energy UK, stated that a number of customers are
informed of any price changes within a few weeks. "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," Christine McGourty of
Energy UK stated.
Claims Financial
Testimonial
"I just had to put pen to paper and write to say I'm more than delighted with my settlement that you won me back from my PPI I had with Lloyds TSB. The Claim Forms were simple to fill in. It was a breeze"
Mr R Evans 11 Nov 2010