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New Ofgem rules.....

SallyG
SallyG Posts: 850 Forumite
http://www.independent.co.uk/news/uk/politics/new-ofgem-rules-ban-energy-firms-from-hiking-prices-for-customers-on-fixed-tariff-deals-8896293.html

"New rules came have come into force which ban energy firms from hiking prices for customers on fixed tariff deals.

Energy regulator Ofgem said providers would also be prevented from automatically rolling customers on to another fixed term contract when their current one ends, which can tie them in with hefty fees and prevent them from comparing the market.

The rules, which form part of wider industry reforms to ensure suppliers treat consumers fairly, come into force today after the watchdog found many providers were able to raise fixed contract prices.

For example, if fixed deals were linked to standard tariffs, they would rise as standard prices increased.

Ofgem said consumers will now have certainty that "fixed means fixed" and that the price and conditions they sign up to will not be changed.

Customers will also be rolled on to variable rate deals when their fixed contract ends, which allow them to switch without penalty."

Are current deals signed up to before today covered by these new rules?

Comments

  • Bark01
    Bark01 Posts: 892 Forumite
    Part of the Furniture 500 Posts Name Dropper Combo Breaker
    In brief product closer rules apply to all tariffs, but pricing structure changes only affect tariffs sold post 1st July 2013 (its a little more complex than this, but this will do for now).

    My understanding is that capped tariffs are still allowed as long as they only track down and not up.
  • SallyG
    SallyG Posts: 850 Forumite
    From the Ofgem website
    https://www.ofgem.gov.uk/retail-market-review
    this caught my eye and summed up my predicament:
    "2.8. However, behavioural economics emphasises that consumers have a limited capacity to assess the goods and services offered to them....."
  • SallyG wrote: »
    From the Ofgem website
    https://www.ofgem.gov.uk/retail-market-review
    this caught my eye and summed up my predicament:
    "2.8. However, behavioural economics emphasises that consumers have a limited capacity to assess the goods and services offered to them....."


    They are stating we are thick in a 'flowery' way. :D
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