The measures provide remedies to suppliers’ shortfalls that emerged from the regulator’s probe into the energy market. Following the closure of the final statutory consultation, Ofgem’s governing authority gave the green light to the timetable for bringing in these vital measures.
Ofgem said that the revised licence condition governing marketing practices should come into force in October 2009. However, the new requirement on written estimates following visits from face-to-face salespeople will come into force on January 18, 2010 to give suppliers an extra three weeks to train staff.
The remedies for micro-businesses will apply to all new contracts entered into on or after this date. For customers on existing contracts, the new rules will only take effect when they enter into a new contract or extend their existing contract on, or after, this date.
Changes to the debt assignment protocol – including doubling to GBP200 the threshold of debt a customer can carry and still switch, will come into effect on January 18, 2010. This will help a greater number of customers to switch supplier, Ofgem said.
A new licence condition requires the big six companies greater transparency on profits and underlying costs and revenues for the big six companies’ supply and generation businesses requires them to publish segmental reports from 2010 onwards for the relevant financial year.
Ofgem has introduced new standards that suppliers must keep to in all of their dealings with consumers. Ofgem said that the initial ideas on these are that suppliers must not: sell a customer a product or service that they do not fully understand or that is inappropriate for their needs and circumstances; change anything about a product or service without clearly explaining why; prevent a customer from switching product or supplier without good reason.
In addition, the suppliers must not offer products that are unnecessarily complex or confusing; and they must make it easy for customers to contact their supplier and act promptly and courteously to put things right when they make a mistake.
