Electricity and gas consumers in Northern Ireland will now benefit from a range of additional consumer protection measures as a result of new European legislation. The legislation, referred to as EU Third Internal Energy Package Directives or IME3, is being implemented by the Utility Regulator and will come into effect from 13 September 2012.
The new measures include:
• increased transparency in the information given to energy consumers by their chosen supplier to help provide clarity in relation to their terms and conditions, bills and energy usage;
• a three-week time limit to switch consumers who want to change supplier;
• further protection for vulnerable consumers and strengthening of existing codes of practice that the Utility Regulator will monitor and enforce;
• additional measures to help consumers in debt;
• advance notification to consumers of changes to terms and conditions or when nearing the end of a fixed-term contract; and
• the introduction of a new mandatory marketing code of practice to prevent mis-selling and covers the practice of door-step selling by regulated energy suppliers.
Shane Lynch, Utility Regulator Chief Executive said:
“These measures will deliver a higher level of consumer protection for Northern Ireland energy consumers, while also meeting the requirements of European legislation.
“The legislation introduces clear and enhanced requirements for consumer protection in energy markets across the EU, and aims to ensure that the existing rights of consumers are strengthened and guaranteed, while also delivering greater transparency from energy companies.
“This is extremely timely. As our energy market is becoming more competitive, further protection for consumers is required. These changes will help us ensure that consumers in Northern Ireland are protected from many of the problems seen in other energy markets.
“The new legislation has been implemented through changes to all existing energy company licences. Therefore, as the regulatory authority, we can enforce the implementation of these measures to ensure consumer protection is achieved.
“We would like to thank all those involved in the consultation and those who played a key role in the process. We believe that these measures are in the best interests for Northern Ireland energy consumers.”
The introduction of the consumer protection measures follows a year-long comprehensive public consultation process by the Utility Regulator and involved all energy companies, the Department of Enterprise, Trade and Investment (DETI), consumer groups and various other key stakeholders. Following the consultation process, the proposed measures were presented to DETI who consented to the modifications to be made to the energy company’s licences in accordance with Regulations 91 and 92 of the Gas and Electricity (Internal Markets) Regulations (Northern Ireland) 2011.
ENDS
For further information, please contact Adele Boyle on 028 90 316343 or 07794 695922.
Notes to editors
• The EU legislation referred to is the Third Internal Energy Package Directives, or IME3 and includes the Electricity Directive (2009/72/EC) and Gas Directive (2009/73/EC) and the transposing regulations.
• Energy companies include both electricity and natural gas supply and distribution companies.
• All energy license holders have been issued with their new license conditions.