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Utility firms to give 30-day notice of price changes
Ofgem, the energy industry regulator, has introduced a rule requiring utility providers to give 30 days' notice of any changes to the price of electricity and gas.
It comes after the regulator issued new recommendations to make the energy market fairer for customers, such as making prices simpler and more transparent and improving unfair contracts.
The Big Six energy firms were also criticised for increasing prices due to rising wholesale costs more quickly than they had reduced prices when costs fell.
Ofgem's new 30-day rule will come into effect on April 28th and will give customers time to switch providers if they are not happy with a new price.
"We believe that 30 days advance notification of price increases, coupled with our new proposals for more transparency and an end to complex tariffs, will give consumers more power to make informed switching choices," said Andrew Wright, Ofgem's senior partner for markets.
Current rules dictate that firms have three months to inform customers after putting up prices. The change will also apply for any contract changes that will significantly affect the customer.
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It comes after the regulator issued new recommendations to make the energy market fairer for customers, such as making prices simpler and more transparent and improving unfair contracts.
The Big Six energy firms were also criticised for increasing prices due to rising wholesale costs more quickly than they had reduced prices when costs fell.
Ofgem's new 30-day rule will come into effect on April 28th and will give customers time to switch providers if they are not happy with a new price.
"We believe that 30 days advance notification of price increases, coupled with our new proposals for more transparency and an end to complex tariffs, will give consumers more power to make informed switching choices," said Andrew Wright, Ofgem's senior partner for markets.
Current rules dictate that firms have three months to inform customers after putting up prices. The change will also apply for any contract changes that will significantly affect the customer.
Copyright
Published: 29/03/2011
The information in this article was correct at the time of publication and contains time sensitive data and links, it may not be accurate at the time of reading.