Energy providers will have to give their customers 30 days’ warning of price rises under new Ofgem rules that begin today.
Contract changes for gas and electricity which leave consumers significantly worse off are included in this new rule.
Andrew Wright, Ofgem’s Senior Partner for Markets, said: “Ofgem is determined to ensure that supply companies play it straight with consumers. Giving customers advance warning of price rises is one way of ensuring a fairer deal for them.”
Alison Wright, spokesperson for Ofgem said: “It’s good news for customers, as they can plan to reduce their energy consumption. Before they wouldn’t have had the opportunity to do so.
“The 30-day advance notice is a license condition for suppliers. If we find a breach of this, we will impose financial penalties.”
Ofgem has the power to enforce penalties of up to 10% of a companies’ overall turnover.
The regulator is planning a broader shake-up of industry regulation following its recent review of the energy retail market. The industry has until 1 June to respond to Ofgem’s proposals to simplify the current system.