ACS

Ofgem has delivered changes to energy supply rules that will give consumers more clout in the energy market. The measures are remedies to flaws uncovered by Ofgem’s recent Energy Supply Probe.

The regulator has laid down new standards of conduct that it will use to judge suppliers’ treatment of consumers.

Consumers can look forward to using greater power in the energy market as a raft of measures from energy regulator Ofgem roll out to bring fairer sales practices by suppliers and clearer information on bills. Following full consultation Ofgem has today unveiled a package of remedies to suppliers’ shortcomings that emerged from the regulator’s major probe into the energy market.

The measures include:
• Tougher rules on marketing practices – including doorstep selling;
• An obligation on suppliers to provide clearer information on energy bills designed to help customers when comparing tariffs;
• Greater protection for small businesses that make up the majority of commercial consumers;
• Helping many low-income and other vulnerable customers to switch to better deals; and
• An obligation on the suppliers to publish revenue, costs and profits from production and supply of electricity and gas.

Ofgem Senior Partner, Markets, Andrew Wright said: “Ofgem has taken on the main consumer concerns and placed tougher rules on the suppliers to remedy those concerns. As each measure comes into play, consumers - including low-income households and small businesses - will be armed with better information and protection. That will give them more muscle in the market to put a greater competitive squeeze on the suppliers.”

The new rules are accompanied by a clear set of standards of conduct that all suppliers should keep to when dealing with domestic consumers and small business. Ofgem will look to these standards when considering any enforcement action.

“The new standards define the spirit of the new rules to go with the letter of the laws,” said
Wright. “They call on suppliers to be clear, fair and courteous and to take the confusion out of comparing products. I particularly urge suppliers to consider carefully whether any of their products could be simplified to help consumers to make informed choices.”