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Brits with debt problems could benefit from new Ofgem ruling

Brits with debt problems could benefit from new Ofgem ruling

- Tuesday, 29 March 2011

Consumers, including those looking into debt consolidation loans, may benefit from a new ruling by the energy regulator Ofgem.

From April 28th, energy companies will have to give their customers 30 days notice before their gas and electricity prices are increased.

Consumers will also have to be given warning if their contracts are going to be changed, as these amendments could leave them out of pocket.

Therefore, Brits, including those seeking debt advice, will be able to switch energy provider to find a cheaper tariff if they have been notified of a price increase.

Andrew Wright, Ofgem's senior partner for markets, said: "We believe that 30 days advance notification of price increases, coupled with our new proposals for more transparency and an end to complex tariffs, will give consumers more power to make informed switching choices."

Under current rules, energy firms have three months to notify their customers of a change in price, after the cost of energy has been increased.

Recent research by uSwitch.com revealed that 41 per cent of Brits have been left feeling concerned about their finances following the Budget on March 23rd.
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