Two announcements from Ofgem today see tougher rules on fixed term energy deals coming into place and ScottishPower receiving a fine for mis-selling.
Ann Robinson, Director of Consumer Policy at Uswitch.com, says: “We welcome these announcements today as they are designed to give consumers confidence and reassurance at a time when they need it more than ever. The greater protection and certainty over fixed price tariffs is especially important as, with price hikes on the way, we are seeing a mass movement towards these types of tariffs as consumers seek greater security.
“The fact is that fixed now means fixed so consumers will know exactly where they stand. More importantly, at the end of the fixed term they will have the freedom to decide for themselves what their next tariff should be. This is good for the consumer, the market and for competition. However, the proof of the pudding is in the eating and we will be monitoring the market to see whether these new rules inadvertently result in competitive deals being pulled as this would clearly not be in consumers’ interests either.
“News of ScottishPower misleading customers on the doorstep is disappointing, but we welcome Ofgem’s fine and the fact that the supplier will pay £7.5 million to benefit vulnerable customers and will set aside £1 million in a fund to compensate customers. This is a sensible approach and we hope that this fine is a sign of drawing a line under the past. Consumers need to have trust and confidence in both the market and suppliers and that is why it’s so important that mistakes are quickly learnt from. It’s also now vital that Ofgem delivers on its reforms so that consumers are better equipped to shop around the whole of the market and to judge the best deals for themselves.”
1. Research conducted in July 2013, through OnePoll, amongst 2,000 UK adults. In response to: ‘Which of the following puts you off switching energy supplier?’ 9% said ‘Takes too long’.
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