Pat Rabbitte (Dublin South West, Labour)

Responsibility for the regulation of the electricity and gas markets is a matter for the Commission for Energy Regulation, CER, which is an independent statutory body. I have no statutory function in the regulation of marketing for either the business or domestic sectors.

The regulator has informed me that it is in the process of outlining procedures for clear and comprehensible presentation of tariffs to domestic customers. The regulator requires all suppliers to put in place a marketing code of practice, setting out all their practices and ensuring that the information they provide to customers is accurate at the time of distribution. The regulator is currently consulting on its guidelines in regard to marketing, with a view to strengthening the protection for customers.

Contained in the consultation is a proposal to standardise the way in which suppliers present tariffs to customers to ensure that customers can compare offers. The regulator also recognises that, as the markets develop, suppliers may choose to offer different products with different types of discounts and services associated with them. In order to ensure that customers can understand and compare the tariffs they are being offered, the regulator considers it appropriate to put in place requirements regarding the presentation of tariffs. This will ensure a level of consistency for customers when looking at different information. The regulator is also proposing that suppliers must notify household customers of changes to tariffs 30 days in advance of the changes taking place, with the exception of where a customer has signed up to a more flexible tariff. This is to allow customers the time necessary to shop around and consider their options in advance of any changes taking place.

Furthermore, the regulator stipulates in its proposed code of practice on marketing that suppliers adopt a transparent and fair approach to the marketing of their products and services and in the arrangement with customers. This includes ensuring that agents do not provide misleading information or apply undue pressure to any person in order to gain a customer.

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Suppliers must take all reasonable steps to ensure marketing material is easy to understand, accurate and specifies clearly the product being marketed and the period it covers.

To aid the process of price comparison, the CER recently launched a system for accrediting websites that compare energy suppliers' gas and electricity prices. Under this framework, a website providing an energy price comparison service will only be accredited by the CER if it meets defined standards, for example, in terms of its accuracy and reliability. This will help provide energy customers with the confidence to use these websites, assisting them in "shopping around" for the best tariff deal.

Price comparison websites can be an invaluable tool in helping energy customers to decide the best deal for themselves. To assist customers in reliably comparing different energy tariffs, the new framework will accredit a price comparison website only if it meets certain prescribed standards, such as independence, impartiality and accuracy. There will also be a monitoring system whereby any CER-accredited website that fails to meet these standards will have its accreditation removed. This should help energy customers in comparing tariff offers and in getting the best deal to suit their needs.

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