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23/02/2009

Call To Prevent Energy Suppliers From Overcharging

Independent consumer watchdog Consumer Focus has called on energy regulator Ofgem to prohibit suppliers overcharging their customers.

Historically, consumers paying by cash, cheque or pre-payment meters, those who use electricity only or have not switched suppliers, have been charged unjustifiably high prices for their energy.

Whilst suppliers have made some progress, Consumer Focus is calling for a new legal requirement to provide comprehensive protection and restore consumer confidence in the market by giving the regulator the power to punish those suppliers who discriminate unfairly.

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The call from Consumer Focus follows evidence in the recent Ofgem probe into the energy market that suppliers have for years been treating consumers unfairly, discriminating by payment type, electricity only tariffs, by means of online deals and even geography - in many instances resulting in the poor paying more for their energy than the affluent.

Robert Hammond, energy expert at Consumer Focus said: "When Ofgem removed the non-discrimination licence conditions, it argued that the best way to protect consumers would be through vigorous competition and reliance on the Competition Act 1998.

"Clearly, that approach has not worked and many customers, especially the vulnerable, have been treated unjustly. Consumers must have confidence that the price they are paying is fair and reasonable."

(GK/JM)

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