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Ofgem has announced the rule change which will see consumers also receive 30 days advance notice of any change in their contract which leaves them significantly worse off.
The changes will come into effect on 28th April 2011 as part of Ofgem's reforms which aim to sweep away complexity in energy pricing.
"Today's changes will again show that we are serious about making sure suppliers play it straight with consumers,” said Andrew Wright, Ofgem's senior partner for markets.
"Our new proposals for more transparency and an end to complex tariffs, will give consumers more power to make informed switching choices.”
The current rules mean energy suppliers have to give three months in which to notify consumers after putting their prices up, so this change will give households advanced notice. The suppliers are also now expected to explain to each individual customer how their price changes will affect them specifically.
"This long-awaited move should help customers to budget for any price rises and make informed decisions early on about whether to switch supplier,” commented Audrey Gallacher, Consumer Focus, head of energy, in response to the announcement.
"The challenge is now for energy firms to step-up to the challenge of improving the market and for the regulator to keep the spotlight on them until they do.”
Switching Energy Supplier
With these new rules consumers can now switch their energy provider before their rates rise, to prevent them paying more than they need to.
With the Money Maxim Energy Comparison Service, consumers can compare the market for a better rate, and save money.
Click here to Compare Energy Prices Now