Written question asked by Jo Swinson (Liberal Democrat) on Wednesday, 5 November 2008, in the House of Commons. It was due for an answer on Monday, 10 November 2008. It was answered by Mike O'Brien (Labour) on Monday, 24 November 2008 on behalf of the Department of Energy and Climate Change.

Energy: Prices

Question: To ask the Secretary of State for Energy and Climate Change what steps are being taken to ensure energy customers are informed of proposed price increases by energy suppliers before entering into lengthy contracts.

Answer: In the domestic sector, longer term contracts are typically at a fixed price, which provides customers with more certainty about their future expenditure. In the business sector, contract may be on a fixed or variable basis. It is for the business customer to consider the range of offers by suppliers. Variable price contracts will change according to a range of factors including movements in wholesale prices. A supplier can therefore, only provide a prospective customer with a price at a particular time. That price may subsequently rise or fall.

Secondary information