Industry NewsUK energy regulator, Ofgem, is proposing to force energy suppliers to provide 30 days notice before changing tariffs. The domestic-focused scheme is designed to provide consumers with more transparency over their bills. This will allow them to budget better, or otherwise change supplier.
The Government has urged suppliers not to resist the changes, indicating that it is willing to be proactive in energy market developments. Previously, the regulator or pure market forces were viewed as the main method of ensuring benefit to consumers.
Ofgem has been making a number of changes to the market, such as these most recent proposals. This follows a review of the retail energy markets in reaction to concerns of impropriety. The regulator found no evidence of a cartel, but did identify some areas of improvement.
However, at the time the review reported its findings, it was suggested that more extensive improvements would require Government action. More recent reports have added that a major investment and market reform is needed to move the UK towards a low carbon economy. This has prompted the Government to consider overhauling the energy markets.
Announcing the proposals, Ofgem's Senior Partner for Markets, Andrew Wright, commented, "A month's notice of price increases, along with annual energy statements and better information on bills, will empower consumers by giving them the facts about how much their energy costs." He added, "Companies should be under no illusions: we will continue to keep the effectiveness of the energy market under review and will not hesitate to bring forward further measures to protect consumers if the evidence shows them to be necessary."
Meanwhile, Energy and Climate Change Secretary Chris Huhne, underlined, "The best result for consumers will be if energy companies don't block the changes that Ofgem propose. But if they do, I won't hesitate to use my powers to end for good the practice of surprise energy bill hikes, if that's what consultation shows to be necessary."