Energy regulator Ofgem has called for a new standard of conduct from energy suppliers in order to make the energy market simpler, clearer and fairer for consumers. The plans include a cap on the number of tariff options that suppliers are allowed to offer in a move that aims to make it easier for consumers to compare energy suppliers.
Prime Minister David Cameron has backed the proposals, stating that the reforms would “put people before profits” and Energy Secretary Ed Davey added that the measures were “absolutely vital” to ensure consumers weren’t bamboozled by the many options available for their gas and electricity supplies.
The new measures state that suppliers will be able to offer no more than four core tariffs for each fuel type, present clearer bills showing the cheapest tariffs, and treat consumers more fairly. Fairly to meet these requirements could result in Ofgem fines.
Director of price comparison service Energyhelpline.com , Mark Todd, commented, “Ofgem's commitment to change is welcome. It is a scandal that there are households languishing on dead, over-piced tariffs without knowledge. The simplification of tariff structures is a positive move, however whilst these steps may be in the right direction, they are too little, too slow. We call on Ofgem and the government to shake up the market in a meaningful way"
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