Carmichael - Rules on energy tariff changes 'farcical' (Aberdeen South & North Kincardine Liberal Democrats)

Aberdeen South & North Kincardine Liberal Democrats <info@aberdeensouthlibdems.org.uk>

Carmichael - Rules on energy tariff changes 'farcical'

January 22, 2010 11:58 AM
Originally published by Scottish Liberal Democrats

Orkney and Shetland MP Alistair Carmichael is calling on Ministers to protect consumers in Scotland 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? has shown that 98% of people would like to be informed of price changes before they happen.

Mr Carmichael is supporting the 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 Mr Carmichael said;

"The balance in the present arrangements favour the supplier rather than the consumer. That is wrong and has to change. For us in the isle this is particularly important. For many local people the cost of staying warm in winter is one of their major expenses. Savings can be made by switching suppliers can be significant. The rates should be designed to encourage this."

Notes:

The full text of Early Day Motion 379, '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.'