Ofgem has today confirmed new rules that mean energy suppliers must give consumers at least 30 days notice before putting up their prices.
The changes will kick in on April 28, giving suppliers 30 days’ notice themselves in which to put the rules into practice.
Ofgem’s senior partner for markets Andrew Wright said: “Today’s changes will again show that we are serious about making sure suppliers play it straight with consumers. 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.”
Currently, energy suppliers have up to three months in which to notify consumers after putting up their prices. Ofgem’s changes mean that suppliers will have to give 30 days advance notice of any price increases.
This new rule also applies to any changes to a contract which will leave the customer significantly worse off.
Ofgem recently reminded suppliers that when they write to each individual customer to inform them of such changes they must be able to explain how it will affect them specifically.
This afternoon, Energy Secretary Chris Huhne said: “It’s only right that consumers are told in advance of energy price increases. Most companies heard what government and Ofgem were saying and gave their customers some advance notice when bills went up recently.
“These new rules from Ofgem will mean that everyone will now get a fair deal and will know at least 30 days in advance before any bill increases kick in.”