The Week Unzipped: Ofgem wants more time for customers to react to energy price increases

Currently suppliers can wait up to two months after raising prices before they inform customers. Consumers then have just 20 days to switch supplier if they wish to avoid paying the increased rate. Ofgem argues companies should give 30 days warning before putting up costs so customers can shop around for a better deal.

During 2008 bills rose by 40 per cent on average and have only fallen since then by about 10 per cent. Ofgem predicts wholesale energy costs will begin to increase over the coming months and consumers could see their household energy bills rise as a result.

There was good news for Npower customers as the company agreed to refund nearly two million homes who were overcharged for gas in 2007. Average refund will be 35.

Home prices edge up

HOUSE prices edged up by 0.1 per cent in September according to the latest Nationwide house price index. The gain brings the annual rate of property price inflation to 3.1 per cent, down from 3.9 per cent in August.

Despite the slight monthly increase September saw the first decline in average prices over a three-month period since May 2009. The quarterly rate of change, which is a more reliable indicator of price trends, fell from 0 per cent in August to -0.9 per cent over the UK as a whole. Scotland was the worst performing region with prices falling by 3.4 per cent over the last three months. Prices were down 0.6 per cent compared with the same period last year.

Nationwide's chief economist Martin Gahbauer, said the figures were consistent with the clear loosening of housing market conditions observed over the summer months.

6bn of equity paid off

BRITONS added 6.2 billion of equity to their homes between April and June, the largest housing equity injection since the beginning of 2009 according to Bank of England.

The UK has now seen equity injections in every quarter for the last two years, as households take advantage of low interest rates to boost equity. This is a reversal of the trend over the last decade for homeowners to withdraw equity from their house to fund other spending

Rise in loans rate

RATES on 5,000 personal loans have increased by 17 per cent in two years according to research from Sainsbury's Finance. The average annual interest rate on a 5,000 loan has climbed to 12.45 per cent from 10.67 per cent in September 2008.

Currently only six lenders offer rates below 9 per cent, compared with 11 lenders in two years ago. Two thirds of personal loan providers charged less than 10.9 per cent in September 2008. Today just a third publish rates below this level.

Nationwide currently leads the market with a new rate of 7.5 per cent on loans of up to five years between 7,500 and 14,999. The rate is available to Nationwide FlexAccount customers. People who do not hold a nationwide current account can take out a loan with the building society via moneysupermarket.com at 7.6 per cent.

Santander lowers rate

SANTANDER reduced its five-year fixed rate mortgage to 4.49 per cent with a 30 per cent deposit and 995 fee. The provider has also launched a two-year tracker at 3.29 per cent with a 25 per cent deposit and no fee.

Post Office cut fixed rates by up to 0.34 per cent and launched a new two-year tracker at 4.69 per cent and "fee free" two-year fix at 4.25 per cent. Both deals are available with a 20 per cent deposit.

Boost for savers

BARCLAYS increased returns on its two-year fixed-rate savings bond to 3.55 per cent. Investors with balances between 50,000 and 1,000,000 will benefit from the higher rate. Barclays pay 3 per cent interest on balances below 50,000.

Sainsbury's launched three new fixed-rate savings accounts paying up to 4 per cent. Savers must deposit between 5,000 and 50,000.