The Government believe that differences in charges relating to the method of payment should reflect the costs of servicing that method, and should not discriminate unfairly against any group of customers. Therefore, we strongly support the regulator Ofgem’s work putting in place rules to ensure that prices paid by consumers are cost reflective.
Ofgem’s initial probe report identified a number of areas where action was required and proposed a range of remedies.
Ofgem published its decision document on new licence conditions to prohibit undue discrimination and ensure payment methods are cost reflective on 26 June. Subject to responses, the new licence conditions should be introduced in August.
Ofgem aims to proceed to Statutory Consultation on the final package of its Energy Supply Probe remedies, including better consumer information and improved protection for small businesses, towards the end of this month and to have the new measures in licences ahead of the coming winter.
The Government believe that differences in charges relating to the method of payment should reflect no more than the costs of servicing that method, and should not discriminate unfairly against any group of customers. Therefore, we strongly support the regulator Ofgem’s work putting in place rules to give effect to this approach.
Following a consultation on their proposals Ofgem published its decision to implement a licence condition change requiring cost reflective payment methods on 26 June. Ofgem intend that this change will be in place by August 2009. This decision can be found online at:
http://www.ofgem.gov.uk/Markets/RetMkts/ensuppro/Documentsl/Addressing%20Undue%20Discrimination.pdf