Ofgem to ban “unjustified” energy prices - Gas and electricity - News - Moneyfacts

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Ofgem to ban “unjustified” energy prices

Ofgem to ban “unjustified” energy prices

Category: Gas and electricity

Updated: 23/03/2009
First Published: 23/03/2009

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

The Office of the Gas and Electricity Markets (Ofgem) has unveiled a package of new rules for energy suppliers which will ban "unjustified" prices.

The proposal comes following a year-long investigation into the conditions of the UK's energy markets. It has raised concerns over the difference in costs for those paying in different ways, such as pre-payment meters.

As such, the regulator is recommending the banning of unjustified price differences to close off any recurrence of poor deals for customers and a set of remedies to address retail market issues.

Specifically, the new rules will oblige suppliers to provide standard annual statements, simplified information on tariffs to make comparison easier, written quotations on doorstep sales and small businesses to be given clear and transparent contracts with no automatic roll-on.

"This is an emphatic move by Ofgem to clear the deck of obstacles that prevent consumers getting access to the best offers," said chief executive, Alistair Buchanan.

"All consumers will be given greater power in the market and small businesses in particular will have a stronger hand to play in the market."

Ofgem will speak to the major energy operators about the proposed changes with the aim of introducing them by the autumn. It has said, however, that it may take the matter to the Competition Commission if an agreement cannot be reached.

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

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