4 September 2007
Households have been reassured that the abolishment of the rule whereby all customers could switch suppliers with 28 days notice will not limit their ability to switch to get a better deal. A spokesman for energy regulator, Ofgem told the BBC that they "did not think that removing the rule would stop people switching".
This follows the launch today by Utilita, a supplier with just 5,000 customers, of a new plan for dual or single fuel at a fixed price for one year, with a 7.5% discount on accounts after this time.
Tim Wolfenden, Head of Home Services at comparison and switching service uSwitch.com commented: "When Ofgem finally removed the 28 day rule last month, it allowed suppliers [outside of the trials that have been running for the past two years] to develop new, innovative contracts which enables them to provide consumers with significantly cheaper 'home energy service' products to save them money and energy, such as loft insulation and new boilers.
"Utilita were, when they first entered the market place two years ago, seen to be innovators in offering extended energy contract terms - they led the way whilst the majority of their larger competitors operated smaller trials. Second time around, after re-entering the market earlier this year, their offering seems to be lacking in substance and real customer value.
A spokesperson from Utilita commented, "This is very competitively priced power. Offering this choice is not going to damage the market."