Warning of power price rises ordered

Previous rules allowed energy companies to write to customers up to 65 days after increasing prices, but energy watchdog Ofgem confirmed it was bringing in new regulations next month to give households more time to switch their provider before bills increase.

The changes come as Ofgem leads a widespread shake-up of the industry. It announced a proposed overhaul last week, revealing it had gathered evidence proving that providers were raising bills more quickly than they lowered them when wholesale costs dropped.

Under the new rules, energy suppliers will also have to give customers 30 days’ notice of any change to their contract that will leave customers significantly worse off.

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

Andrew Wright, Ofgem’s senior partner for markets, 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.”