28 July 2008
Energy regulator Ofgem has launched a new set of guidelines for energy suppliers offering social tariffs to low income households. Following concerns that vulnerable customers were paying over the odds for their gas and electric, the watchdog said social tariffs must now match the lowest price plans suppliers have to offer. An Ofgem spokesman said that previously internet tariffs were cheaper than social tariffs - deals for customers who spend more than a tenth of their household income on energy. But the tighter rules on social tariffs will ensure that those most in need of discounts can be confident they are on the best deal available. Independent price comparison site uSwitch.com has welcomed the move, which it describes as "simple, practical, and common sense". Ann Robinson, Director of Consumer Policy at uSwitch.com, said: "This move is vital in the current economic climate." She said it may take some time for the recommendations to be pushed through and in the meantime anyone struggling to pay their gas and electricity bills should contact their supplier to find out what help is available. A report by the Business and Enterprise Select Committee has warned that rises in gas and electricity prices will have serious implications for the UK's economic competitiveness as well as for consumers.
© 2008 Adfero Ltd
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