Hidden energy price increases – government may step in
October 1, 2010 at 2:36 pm
It’s a practice that frustrates energy customers across the country: energy providers increasing their prices without informing their customers first. Sometimes it is months before customers realise that they are paying more, and now the practice has been highlighted by energy secretary Chris Huhne who has vowed to crack down on it.
Speaking to Liberal Democrat delegates at the party conference, Huhne warned energy companies that if more is not done soon to stop this unfair practice then the government would have to step in, stating that he would use his “ministerial powers” to intervene. He highlighted the fact that in any other business the consumers “know the price before they buy”, and asked why it should be any different when people are buying their gas and electricity.
He stated that in some instances energy companies have gone for 65 days before informing their customers that their bills have increased, which he described as “outrageous”.
By informing customers before the prices of their bills go up, customers will then have an opportunity to investigate alternative providers and switch suppliers if necessary. On top of that, it would also help customers to budget more effectively for the price increase when it came into force.
Huhne also said that the government would insist that energy companies include more information on their bills. This would provide customers with details about rival companies’ deals and make it clear that they can switch to another provider if they want to. The idea is that if consumers have access to the extra information this will force down unfair prices.
