Ofgem has delivered changes to energy supply rules. The measures are said to be remedies to flaws uncovered by its recent Energy Supply Probe.

The regulator has issued statutory notices that put in place legally binding obligations on suppliers to comply with the package of remedies that emerged from its energy supply market probe. Ofgem said that the package will make the market work better and empower and protect energy consumers.

Ofgem’s package of remedies follow new licence conditions prohibiting non-cost-reflective payment methods and other forms of undue discrimination which also arose from the probe and became effective on September 1, 2009.

The measures include an obligation on suppliers to provide clearer information on energy bills designed to help customers when comparing tariffs; protection for small businesses that make up the majority of commercial consumers; helping many low-income and other vulnerable customers to switch to better deals; and an obligation on the suppliers to publish revenue, costs and profits from production and supply of electricity and gas.

Ofgem has introduced new standards that suppliers should adhere to in all of their dealings with domestic and small business consumers. Under these, suppliers must not sell products or services that customers do not fully understand or that is inappropriate for their needs and circumstances. They must not change anything material about a product or service without clearly explaining why and prevent a customer from switching product or supplier without good reason.

In addition, the suppliers must not offer products that are unnecessarily complex or confusing and suppliers must make it easy for their customers to contact them and act courteously to put things right when they make errors.

Andrew Wright, senior partner (markets), Ofgem, said: “Ofgem has taken on the main consumer concerns and placed tougher rules on the suppliers to remedy those concerns. As each measure comes into play, consumers – including low-income households and small businesses – will be armed with better information and protection. That will give them more muscle in the market to put a greater competitive squeeze on the suppliers.”