Ofgem outlines plan for simplified energy tariffs
Energy regulator joins the PM in call for tariff reform
October 19, 2012
Energy companies should be forced to tell their customers about the cheapest gas and electricity tariffs they offer according to the industry’s regulator Ofgem. The regulator insisted their proposals would make the system “simpler, fairer, and clearer”. Ofgem wants to ban the complex multi-tier deals which currently make it so difficult for consumers to decide which tariff is the best for them. Moreover, energy companies would be forced to give customers personalised information to help them pick the tariff which is right for their usage, as well as automatically placing customers on the cheapest deal once their fixed term tariff ends.
These plan follow hot on the heels of David Cameron’s surprise announcement in PMQ’s on Wednesday that energy companies would be forced to simplify their tariffs.
Ofgem chief executive Alistair Buchanan said: “Our plans will put an end to consumers being confused by complex tariffs and will usher in a simpler, clearer, fairer and more competitive energy market for all consumers.