Ofgem: Cheaper rates for all

Article date : 06/10/2008

Customers who pay for their energy by direct debit or pre-paid meters should not be charged different rates by their providers, the Office of Gas and Electricity Markets (Ofgem) warns.

A seven-month investigation by the energy watchdog suggests that there should be wide reforms so that the poorest customers have access to the cheapest rates.

"Initial findings from our energy market probe give us grounds to demand that companies end practices that hinder customers, especially the vulnerable, from getting the best deal," Ofgem chief executive Alistair Buchanan says.

Ofgem also acknowledges that while competition can produce better tariffs for customers, households cannot be sheltered from the rising prices in gas, coal and oil, which make up the majority of consumer bills, the watchdog reports.

The average price difference between meters and direct debits increased from £80 at the start of 2005 to £125 by the beginning of 2008.

Homeowners could make a start at reducing home heating bills by up to a third by installing an energy-efficient condensing boiler, the Energy Saving Trust claims.

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