SIR ROBERT: TIME TO CHANGE UNFAIR RULES ON ENERGY PRICE CHANGES

5.00.00pm GMT Fri 22nd Jan 2010

Sir Robert Smith MP is calling on Ministers to protect consumers in the region by changing the rules surrounding energy tariff price increases.

Since 2006, energy providers have had 65 working days to inform their customers of a price rise after it has taken place - over 6 times longer than the previous time limit. In contrast, consumers only have 20 days to switch their supplier after they have been informed of any changes that will increase their energy bills.

Research conducted by the consumer rights group Which? shows that 98% of people would like to be informed of price changes before they happen.

Sir Robert has signed a Liberal Democrat Parliamentary motion calling on the Secretary of State for Energy and Climate Change to require Ofgem, the energy regulator, to change the conditions of suppliers' licenses to force them to publicise price increases before they are introduced.

Commenting, Sir Robert said:

'The coinciding factors of rising energy costs, the difficult economic climate and a prolonged spell of cold weather mean that more and more people are struggling with the costs of staying warm through the winter.

'Under these conditions it is essential that members of the public are able to make an informed choice about where they buy their power. Allowing companies to wait up to 65 working days before publishing details of tariff increases retrospectively is simply unacceptable.

'Ministers must act now to end this practice and ensure that people have all of the facts when choosing their energy supplier.'

The full text of Early Day Motion 579, 'Notification of Price Changes by Energy Companies', is as follows:

'That this House notes that energy companies have 65 working days to inform their customers of a price rise after that price rise has taken place; further notes that customers have only 20 days to switch after being informed; further notes that research from Which? shows that 98 per cent. of people want their supplier to notify them ahead of price rises; further notes that the relevant licence condition was only implemented in 2006 and that previously suppliers were required to provide notification within 10 days; acknowledges Ofgem's statement that this is an issue of concern and their pledge to ask its consumer panel to consider the issue; but calls on the Secretary of State for Energy and Climate Change to be more proactive and require Ofgem to change the relevant licence condition to ensure that energy suppliers inform their customers in advance of a price rise.'