REGULATOR’S NEW RULES PACK A PUNCH FOR CUSTOMERS
Ofgem acts now and empowers consumers through new retail market rules
Energy regulator Ofgem has unveiled a package of new rules for energy suppliers that will give consumers more power and help to seal the flaws in the retail market, identified in the regulator’s market probe.
Gareth Kloet, head of utilities at Confused.com comments:
“The proposed measures will make the market work far better for all energy consumers, including vulnerable households and small businesses. The regulator is proposing an approach on two fronts; to stop providers charging some customers more than others, unless justified, and to remove some of the barriers to switching by implementing the following;
Annual statement for energy customers – This is important because it means customers get a clear and accurate view on how much energy they used during the year and on which tariff, which means they can compare energy prices much more effectively. On the statement customers will also be reminded that they can switch providers and tariffs and the types of deals available in the market. This sounds like Ofgem is asking the suppliers to do what comparison sites have been doing for years – great if they do it properly but will they?
Door to door salesmen – Ofgem has identified that only 1 in 2 people save money when signing up with a door to door salesman. The guidelines announced today will insist that these salesmen provide customers with written quotes to enable a fair comparison. The new rules will also make the salesmen provide proof that the deal they are recommending is actually cheaper. This is better for the customer but still not ideal. A door to door salesman will not provide a comprehensive comparison as they will only represent a single supplier. Instead, customers should use a Consumer Focus accredited comparison service, like Confused.com.
“In general these measures should provide customers with more relevant information which should make it far easier for them to find, and switch, to the best deal. “
