Green light to switch

By HELEN LOVELESS, MAIL ON SUNDAY ENTERPRISE EDITOR
Updated:

 

HOUSEHOLDS with limited utility debts will no longer be tied to remaining with the same energy supplier, it was announced today.

From February, gas and electricity customers using a prepayment meter will be able to switch providers, providing they owe no more than £100 in outstanding bills.

There are more than 3.6m cases of energy debt in the UK. Under existing rules people affected are blocked from changing supplier until the debt has been repaid.

The changes to be introduced by industry regulator Ofgem are designed to help people reduce their fuel bills, by allowing them to shop around for the most competitive tariff.

John Neilsen, managing director of customers and supply at Ofgem, said it was committed to ensuring a competitive market for consumers.

'I very much hope…many customers now take advantage of this new chance to switch to a better deal,' he added.

Yet the plans have been criticised by consumer watchdog, energywatch, for 'not going far enough'.

Ann Robinson, chair of energywatch, said: 'The average debt among energy consumers is £150, so only a relatively small percentage of those in debt will be able to benefit. The proposals will do little to improve the lot of Britain's most vulnerable consumers.'

Energywatch also slammed the proposals for excluding millions of people in debt who used payment methods other than prepayment meters.

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