Connect with us

Top Stories

British energy regulator plans new rules to help customers as prices soar

British energy regulator plans new rules to help customers as prices soar 1

(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.

(Reporting by Nishit Jogi and Akriti Sharma in Bengaluru; Editing by Nick Zieminski, Subhranshu Sahu and Louise Heavens)

Editorial & Advertiser disclosure
Our website provides you with information, news, press releases, Opinion and advertorials on various financial products and services. This is not to be considered as financial advice and should be considered only for information purposes. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third party websites, affiliate sales networks, and may link to our advertising partners websites. Though we are tied up with various advertising and affiliate networks, this does not affect our analysis or opinion. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you, or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish sponsored articles or links, you may consider all articles or links hosted on our site as a partner endorsed link.
Global Banking and Finance Review Awards Nominations 2022
2022 Awards now open. Click Here to Nominate


Newsletters with Secrets & Analysis. Subscribe Now