No More Energy Price Hikes without Advance Warning

There are a lot of consumers out there that simply feel that energy suppliers have way too much power. Well thanks to a new rule by Ofgem, some of their power has been taken away. Gone are the days that energy suppliers can raise prices without advance warnings. This new rule means that all energy suppliers have to give consumers at least a 30-day notice before their energy price increases.

This new move is supposed to come into effect as of April 28. By having to contact consumers with a 30-day warning, they will have time to look for other companies to get their power from to avoid the price hike. This new rule pretty much just puts a little bit of the power back into the hands of the consumer.

The senior partner for markets at Ofgem, Andrew Wright, said that these new changes will again show that the regulator is serious about making sure suppliers play fair with consumers. Ofgem believes that a 30-day advance notice of price increases, coupled with a new proposal for more transparency and an end to complex tariffs, now gives consumers the upper hand for a change. Consumers now have the tools they need to have to know when it is time to change energy suppliers.

Of course, it stands to reason that a lot of energy suppliers are upset with all of these recent changes, and experts say that they should be. Until now, energy suppliers had the power to keep consumers in a “guessing” game when it came to their energy prices. With all of these new reforms, the power is slowly starting to shift to the consumer.