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GAS and electricity companies will be obliged to offer their lowest-price packages to so-called 'vulnerable customers' under new rules to be introduced by the Commission for Energy Regulation (CER) according to local Councillor Robbie Gallagher. . The ESB later bowed to pressure to extend discounts on electricity and gas prices to customers who were making a genuine effort to clear their debts, including installing a meter to control electricity use and engaging in installment payment plans. The decision is contained in a new Consumer Protection Code, which will come into force later this year. Companies will be obliged to tell a customer who wished to switch to a new tariff exactly what the savings would be, and if a better deal was available to them. Customers who choose to pay by direct debit often enjoy better discounts. If, for example, a customer falling into the 'vulnerable' category wished to pay by direct debit, the company would be obliged to give them the best prices. The code follows deregulation of the domestic electricity market on April 4. The commission said it was CER's duty to "ensure adequate safeguards to protect vulnerable customers", and the code would protect customers from excessive tariffs. "The CER has decided that suppliers will be required to ensure vulnerable customers are on their most economic tariff rate for the customer's chosen payment method. This requirement will be included in the vulnerable customers' code of practice," it said. An exact definition on a 'vulnerable' customer is being developed by the Department of Energy, as required by EU law. Surveys have found that while competition in the market is strong, knowledge of electricity pricing is still low among consumers and a small but growing number of people have not realised the savings that they expected in switching. The commission is also considering if suppliers should publish all existing prices in a straight forward manner to allow for easier price comparison. Cllr Gallagher says that publishing prices online for everyone to see should be considered. “People are receiving calls and visits from companies promising cheaper energy. A dedicated online information site is just one way that the facts can be provided so that people can make the right choices for themselves. It would also help drive competition and assist in fairer pricing for communities as well,” he concluded.
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Thursday, 28 April 2011 12:44
