ST HELENS Council has welcomed the government's move to outlaw 'gas cowboys' who charge consumers to switch to a new supplier.
The ruling will also make it illegal for gas companies to accept anyone who has been forced by high-pressure sales techniques into making a payment to switch.
Since the gas proposals were announced thousands of people have been charged up to £30 just to switch suppliers. Earlier in the St Helens Star, the council issued warnings to local residents who are considering any change to their gas supply.
St Helens is particularly delighted at the legislation as it is partly funding a national enquiry into fuel and water poverty and the way companies fix their charges. The findings will be used to influence government thinking in future legislation which controls the fuel and water industries.
Councillor Richard Ward, chairman of Housing and Environmental Services, said: "Already there have been cases of door-to-door 'brokers' calling on householders to get them to sign up with a new supplier and charging for the privilege. There is no need to part with cash as all relevant information is widely available on gas suppliers via newspapers and leaflets and the gas companies themselves. Other people have come forward to say they have been rushed into making a decision. Our advice is absolutely clear, if in any doubt, don't sign."
And Chief Trading Standards Officer Ken Wardale added: "Working out the best deal that suits you is not that simple. It's a minefield of differing ways of setting prices; some have no standing charges but higher fuel prices or vice-versa. Remember your individual circumstances will dictate the best deal for you."
He also urged residents to study in detail any new proposals put to them and warned of a number of problems appearing as the new gas deregulation gathers momentum.
Prior to 1996 only British Gas could provide the service but now any licensed gas company can sell gas to householders and some local residents have already signed up to change from British Gas. Although competition was brought in on the assumption that it would lower prices and increase service quality, this may not always be the case.
You do not have to change from British Gas if you are happy with the service and the cost and, British Gas have announced price cuts in 1998. If you can afford to pay by direct debit all companies charge the lowest rates for this type of payer.
Any change in supply basically means that you pay your bill to a different company. The council are concerned that not everyone will benefit equally from the changes and worry that poorer households, particularly those on pre-payment meters or those who have debt problems, will not get the same level of savings as others.
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