Ofgem Warns Consumers to Beware of Overcharging on their Energy Bills
With two major UK energy companies being hauled over the coals for overcharging their customers, once again consumers are being reminded not to be too trusting and to check their accounts thoroughly when they come in. Things to look for are increased tariff charges without pre-advice and if the energy charged for in any way matches what the meter reading shows for the period. The two energy companies under scrutiny by Ofgem, who will remain un-named, at least for the meantime, were found to have charged a cross section of their customers with what the organisation described as the application of ‘unjustified price premiums’.
Ofgem or the Office of the Gas and Electricity Markets to give them their full title were established to protecting UK consumer interest as their first priority. They do so by regulating the companies which run the gas and electricity networks as well as encouraging fair competition between them.
The company's overcharging issue first came to light during a random review of reforms recently carried out by Ofgem to study behaviours in UK energy market. While Ofgem has yet to name the two suppliers in question, but has called for them to provide a reason why consumers were being systematically overcharged for their home energy.
A spokesman for Ofgem has stated that if the matter is settled speedily and amicably, and those consumers who were overcharged by re-imbursed and undertakings were given not to repeat such wrongdoings, then the matter would be laid to rest. On the other hand if such actions were not taken, a full and public investigation would be carried out.
Energy suppliers were recently in the news for charging customers varying amounts depending on where they live. In response Ofgem launched reforms to help combat what has been described as ‘postcode lottery pricing’.
A spokesperson for Ofgem has pointed out that that since 2008 probe the organisation has noticed a steady reduction in price differentials in the UK energy market. Price differentials mark the variations in electricity supplier charges, in regions where a distinct monopoly exists in comparison with the energy company's rates and tariffs in an area of the country where there is more competition for business.
Due to their monitoring, Ofgem have observed that since the middle of 2008 this average differential has almost halved, from over £30 per customer per year to £18.
| |
^Top | |
 |
© 2011 | An Affiliate of British Gas |  RSS |  |
|
