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Plans for Ofgem welcomed by consumer groups - 21/09/2011

With the energy secretary stating that Ofgem will be given more powers to deal with the Big Six energy suppliers, consumer groups have said the promises have to be backed by action.

The Scotsman reported that Citizens Advice Scotland has welcomed Chris Huhne's announcement that the energy watchdog will be able to award unlimited compensation to cheap energy customers who have been mistreated by their supplier.

Susan McPhee, head of policy at the organisation, told the newspaper: "This announcement is a sign that the government is listening to these concerns, and we welcome that. But this must be the start of a process, not the end. We need sustained long-term action."

Speaking at the Lib Dem conference in Birmingham this week, Mr Huhne stated: "I believe Ofgem should have new powers to secure redress for consumers - money back for bad behaviour - and we will stop the energy companies from blocking action by Ofgem, which can delay matters by a year."

He also disclosed plans to encourage smaller energy suppliers to enter the market.

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