October 29, 2003

Prepayment Changes

PREPAYMENT CLIENTS TO BE ABLE TO SWITCH EVEN WITH DEBT

Prepayment customers with debt of up to £100 will now have the opportunity to switch supplier and is estimated that up to one million prepayment customers in debt could benefit.

Energy Regulator Ofgem has today (Wednesday) welcomed the vote by energy suppliers to introduce permanent arrangements which will allow many prepayment customers who are in debt to switch suppliers and save money on their bills.

The regulatory changes announced today, which Ofgem asked suppliers to vote to accept, build on a protocol agreed and implemented by supply companies which widens the opportunities available to customers to switch supplier. The protocol was developed by industry after a three month trial involving the major energy supply companies.

The protocol will come into force next February, and will allow gas and electricity customers with a debt of up to £100 who use a prepayment meter to transfer to another supplier, taking their debt with them. In the past this has been a barrier to consumers switching supplier.

Ofgem's Managing Director of Customers and Supply, John Neilson, said "These changes demonstrate that Ofgem is committed to working with industry to remove barriers to consumers enjoying the benefits of the competitive market.

Ofgem has been pressing energy suppliers for some time to widen the opportunity to switch and to make this change permanent. I am delighted that we have been able to make the announcement today, and that it has widespread support from industry. I very much hope that consumer groups will now work with Ofgem to publicise this new opportunity, so that many customers take advantage of this new chance to switch to a better deal.

Posted by energylinx at 03:35 PM Technorati: Energy Prices

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