Embedded Files
The role of Ofgem
It is energy regulator Ofgem’s job to make sure consumers are protected from high energy bills and mis-selling practices. The organisation oversees the energy market and enforces regulations which gas and electricity suppliers must adhere to.
If any supplier is suspected to be operating outside these regulations, it is Ofgem’s job to step in, run an investigation and fine the supplier if necessary. While Ofgem holds the power to investigate and penalise energy companies, it is often up to individual consumers to understand their rights and file complaints when those rights are violated.
Ofgem’s Retail Market Review
A survey carried out by uSwitch.com in June 2013 revealed that 70% of consumers were overcharged for a household utility over the previous 12 months. A survey carried out just a month later, determined that three quarters of consumers are unable to identify mistakes in their energy bills.
This confusion surrounding energy bills and pricing has led a number of public figures and institutions to call for reforms. Ofgem’s Retail Market Review, published in June 2013, aims to create a simpler energy market for consumers.
The initiative will see energy suppliers cut the number of plans provided to four core tariffs and replace existing two-tier energy unit pricing systems with a single energy unit price and standing charges. The latter are set fees which cover the cost of supplying a household with power.
Can my energy supplier up its prices?
Yes. Wholesale oil and gas prices are constantly changing and your energy provider is likely to alter its retail prices accordingly. But don’t worry, they are obligated to let you know at least 30 days in advance.
What can I do if my supplier raises its prices?
If a supplier informs you of an upcoming price rise, the easiest way avoid it is to switch to a cheaper plan. This may require you to switch energy supplier.
It is worth noting that you have 20 days from when you were notified of the price increase to inform your supplier that you would like to switch. If you tell them later than this specified deadline, then your next bill will include the price rise.
You can also guard against price rises by selecting a fixed price plan.
Should you decide to remain with your energy supplier despite the price increase, make sure you take a meter reading on the day the rise is applied. You should share this information with your provider to make sure they are able to accurately assess your consumption.
Can energy companies raise my direct debit payments?
Yes. Your energy supplier will usually check your direct debit payments twice a year to compare your real consumption with your estimated consumption. This comparison may reveal that you have been paying more (or less) than your supplier has been charging you. As a result, the supplier can raise your payments to reflect this change.
Under the Direct Debit Guarantee, should your payment increase or decrease, your supplier is under obligation to let you know a minimum of 10 days in advance. If your bill changes and you are not told, you can contact your bank to dispute the charge and seek compensation.
To avoid paying an incorrect amount, you should check your bills against your electric and gas meter readings. You can find out how to do this with our electric meter guide. We recommend informing your energy supplier should any significant event take place within your household that could affect consumption, such as the number of people in your household changing.
If you disagree with an increase, get in touch with your supplier and ask them to explain the new figure. You can dispute their reasoning by providing them with an electric or gas meter reading. Another option to avoid increases would be to consider opting for a fixed price plan.
What if my energy supplier can’t resolve my issue?
If your supplier is unable to sort out your issue or doesn’t get back to you, it’s time to get in touch with the Ombudsman Services – Energy.
First, your supplier needs to acknowledge that the issue cannot be resolved on their side. Ask the supplier to provide you with a letter of deadlock which you can take to the ombudsman. This letter will state that they are unable to solve the problem.
You need to give your supplier eight weeks to try to solve any issue you have raised before they are required to provide you with a letter of deadlock. If, after this time, they do not issue a letter on request, you are free to contact the ombudsman.
What is energy mis-selling?
Gas and electricity suppliers are bound by certain rules when they market and sell energy contracts. These rules are either dictated by energy regulator Ofgem or part of a voluntary code of practice which most of the UK’s big six suppliers have signed up to.
Should an energy supplier pressure or mislead you into agreeing to a contract, you may have been mis-sold an energy deal. The process is not as uncommon and as you might think — and SSE was recently fined a record £10m for mis-selling contracts between 2009 and 2011.
Since then, energy companies including SSE have, for the most part, put an end to these questionable practices but it’s always good to keep an eye out.
You can find more information on what constitutes mis-selling, as well as templates for letters, at the Citizens Advice Bureau website.
I think I’ve been mis-sold an energy contract — what should I do?
If you think you have been mis-sold an energy contract, your first step should be to get in touch with the relevant energy supplier. If you have been switched to a new supplier without your consent, you can complain to either your current or previous supplier.
What if I can’t afford my energy bills?
If you are having trouble paying your gas and electric bills, you should get in touch with your supplier as soon as possible. Energy suppliers must give you advice and work out a payment plan which takes into account what you can afford. Do not agree to a plan you will be unable to fulfil.
If you sign up to a plan but find yourself forced to default, your energy supplier may decide to install a prepayment meter in your household. In certain circumstances, you may be eligible for a grant from an energy charity.
What if I change my mind about switching energy supplier?
Everyone changes their mind, so don’t worry if you decide you no longer want to switch energy supplier but do act quickly. You may be able to cancel your switch depending on a number of factors. These include whether or not you have a contract, how the deal was sold to you and the contents of the agreement itself.
If you have agreed to change supplier, in writing or verbally, then you have a contract with the supplier. If you did not agree than you do not.
If the agreement was made either at your home or in a public space (such as a shopping centre), then you have a 14 day cooling off period to cancel your contract. You do not need to give a reason.
Keep in mind that the agent must provide you with a copy of the contract, information on who to contact for independent advice as well as his or her name and position. If this information is not provided then you are free to cancel the contract.
If the agreement was made on the phone or online, you have 14 days to change your mind. This timeframe can be increased under the Distance Selling Regulations.
How do I make a complaint to an energy supplier?
Energy provision is a service like any other and, if you feel you’re energy supplier is underperforming, you have every right to complain.
First, complain directly to your provider. Sometimes a simple phone call is all it takes to clear up a misunderstanding. Do make sure you keep of note of who you spoke to and what their advice was, for future reference.
If the issue is more complex and isn’t resolved through a phone call, we recommend writing to your supplier. You can do this either by email or post. Be sure to include your account information and any relevant scans or photocopies of your bills.
If you’re still having problems, get in touch with Citizens Advice Consumer Service. This organisation was created to provide advice to consumers, although they won’t be able to take action on your behalf unless you qualify as a vulnerable citizen.
Switching supplier if in debt
If you've owed the money to your supplier for 28 days or less, you can switch supplier. The debt will be added to your final bill from your old supplier.
You've been in debt for more than 28 days
If you've owed the money to your supplier for more than 28 days, you can't switch supplier until you've paid the money back.
If your supplier tells you they're raising their prices and you decide to switch, you'll have 30 days to pay off the debt before they can stop you.
You can't be stopped from switching if it's your supplier's fault that you're in debt - for example because they've estimated your bill wrong. If you do owe them money you'll still need to pay this when you get your old supplier's final bill.
If you have a prepayment meter
There are different rules for switching supplier if you pay in advance for your gas and electricity.
You can switch supplier unless you owe more than £500 for gas or £500 for electricity.
You’ll need to ask the new supplier to agree to transfer your debt along with your supply (this is called the ‘Debt Assignment Protocol’).
If your supplier doesn’t let you switch
Your supplier might try to stop you from switching, even if you're entitled to. If this happens, you should make a complaint.
If you have a prepayment meter, you might want to write to your supplier and explain that you have the right to switch.
Apps for energy providers
These energy providers have apps to manage bills:
- Ideas and resources
Report abuse