Customers get firmer fuel price protection

Previous rules allowed energy suppliers to write to customers as long as 65 days after raising prices, but energy regulator Ofgem decided to bring in the new rules to allow households more time to switch their providers before bill increases.

Under the new rules, which come into force today, energy firms will also have to give customers 30 days’ notice of any changes to their contracts that will leave them significantly worse off.

All the “big six” energy providers have brought in price hikes in recent months, blaming the rising cost of gas and oil on the wholesale markets.

When the change was announced, Andrew Wright, Ofgem’s senior partner for markets, said the changes would “show that we are serious about making sure suppliers play it straight with consumers”.

Hannah Mummery, energy expert for Consumer Focus, welcomed the move which will give people more chance to shop around.

“People clearly need to be given fair warning if prices are going to go up, not told months after the event,” she said.

“Ofgem has also made some strong recommendations from its energy market review which should also make it easier for customers to compare energy tariffs and switch to a better deal.

“The challenge now is for energy firms to deliver the changes needed to make switching work for consumers and give them confidence that they’re being asked to pay a fair price. The regulator must keep the pressure on until they do.”

Several energy companies have already started giving customers more notice since the proposals were put forward last year.