British energy regulator plans new rules to help customers as prices soar
Reuters
Published Jun 20, 2022 00:13
Updated Jun 20, 2022 07:51
(Reuters) -Britain's energy regulator on Monday proposed new measures to protect consumers and prevent energy suppliers from charging high direct debit payments as households struggle to meet soaring energy bills.
Regulator Ofgem said its measures were aimed at reducing the risk of more electricity and gas suppliers going bust, preventing a repeat of the crisis of last autumn and winter.
More than 25 suppliers collapsed last year, squeezed by record-high wholesale energy prices.
The changes proposed on Monday included limits on payments billed via direct debit, to "ensure credit balances do not become excessive", Ofgem said.
The proposed package also includes rules to protect the money of users when a company fails and customers are moved to a new supplier with credit balances, ensuring households do not have to pick up the bill.
The cost of moving customers of failed companies to new suppliers was 94 pounds ($115.08) per household, including new suppliers having to buy extra gas at short notice while prices were at record highs and replacing lost customer credit balances and green levy payments, Ofgem said.
"Today's proposals will make sure that customers' hard-earned money is properly protected so that a company must foot the bill if it fails, rather than consumers picking up the tab," Jonathan Brearley, chief executive of Ofgem, said in a statement.
Household energy bills in Britain look set to surge by another 40% in October, Ofgem warned last month, deepening a cost-of-living crisis that is piling pressure on the government to do more to help the poorest.
Get The App
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.