02.01.14
Energy pricing reforms introduced
Changes to energy tariffs come into play today to create a simpler and clearer market for consumers, Ofgem has announced.
Suppliers will be limited to offering four tariffs per customer for electricity and gas, and simplify how prices are charged. By April suppliers will have to tell consumers which of their tariffs is the cheapest.
Ofgem will provide an annual report on the health of competition in the market.
Chief executive Andrew Wright said: “Profits are not an entitlement, they should be earned by companies competing keenly to offer consumers the lowest prices and the best service.
“Now it is up to suppliers to build on our reforms to restore consumer confidence in the energy market. There are good signs that they are taking up this challenge.”
Richard Lloyd, executive director of consumer group Which?, welcomed the reforms but said: “They just do not go far enough to boost competition and help consumers find the cheapest deals.”
Other changes already introduced mean that suppliers are no longer allowed to increase prices during the course of a fixed term and must not automatically roll customers on to another fixed-term offer when their current one ends.
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