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14/05/2010

Which? Challenges Energy Companies

As Ofgem's consultation on Advanced Notification of Unilateral Contract Variations closes, Which? has said it is outrageous that energy suppliers are still allowed to keep their customers in the dark over price hikes.

Which? Chief Executive, Peter Vicary-Smith, said: "We've lobbied hard to get this absurd rule changed and are delighted that Ofgem is finally responding to our concerns.

"We want to see the tables turned in favour of consumers so that energy suppliers have to give at least 65 working days notice ahead of price changes. This will give people time to explore alternative tariffs, switch to another supplier or budget to address increased energy costs."

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Which? research shows that 95 per cent of people think their energy supplier should notify them ahead of price rises.

In its consultation response, Which?:

  • Supports the proposal to require advance notification of price changes
  • Wants suppliers to have to provide advance notification of all changes to tariffs that leave consumers worse off, such as increases to prices, changes to discounts and to contract length
  • Recommends that consumers are given at least 65 working days notice of all contract variations that leave consumers worse off
  • Wants all tariff offerings to be guaranteed for 12 weeks from the point the consumer initiates a switch to a new tariff
  • Wants Ofgem to amend the licence conditions to ensure that consumers are not penalised due to inefficiency on the part of suppliers during the transfer of a customer from one supplier to another, so if one of them slows it up or makes a mistake the consumer isn’t stuck with the higher tariff they wanted to switch away from
  • Currently consumers have 30 working days to clear any existing debt with their supplier if they want to switch. Which? wants Ofgem to look at the levels of debt consumers are finding themselves in and to assess whether 30 working days is an appropriate period to expect repayment
(CD/GK)

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