Oct
30
More Choice for Energy Debtors
Filed Under Debt Advice, Living Expenses
Energy suppliers have voted in favour of regulatory changes which could benefit up to one million customers in debt to their energy supplier.
Energy Regulator Ofgem asked suppliers to vote to accept the regulatory changes after a three month trial involving the major suppliers, including British Gas, Powergen, London Electricity, SWEB and Scottish and Southern, and will build on a protocol already agreed with suppliers.
The protocol, which will come into force next February, will bring an end to the problems faced by those customers on prepayment meters who have debts of up to £100 and want to transfer to another supplier.
In the past they have been prevented from moving to a new supplier because of the debt, which has meant that they’ve been unable to benefit from the competitive energy market. Now that barrier has been removed and these customers will be able to save money on their bills.
“Ofgem has been pressing energy suppliers for some time to widen the opportunity to switch and to make this change permanent”, said Ofgem’s Managing Director of Customers and Supply, John Neilson. These changes demonstrate that Ofgem is committed to working with industry to remove barriers to consumers enjoying the benefits of the competitive market. I very much hope consumer groups will now work with Ofgem to publicise this new opportunity, so that many customers take advantage of this new chance to switch to a better deal”.
