Ofgem ban on complex tariffs

Ofgem-standard-picAs of 2nd Jan Ofgem has banned suppliers from offering complex tariffs.  The reforms also mean that once a consumer has decided how they want to pay for energy they will have just four core tariffs to choose from for gas and four for electricity, from each supplier.  Read more from Ofgem here.

The changes are part of Ofgem’s reforms for a simpler, clearer, fairer energy market and Ofgem believe that together these changes will make it far easier for consumers to compare deals and find the best tariff for them. From April 2014 a range of reforms are also coming into force to give consumers much clearer information on energy. For example, suppliers will have to tell consumers regularly in writing which of their tariffs is cheapest for them on bills, annual statements and other communications.

Citizens Advice expressed concern that energy companies should not use this as an opportunity to get rid of their cheaper deals – see more here. They will be helping people to cut down on their energy bills through Big Energy Saving Week which runs 27-31 January 2014.  The campaign will help consumers to find out about any extra help available from their energy firm.

Consumer Futures pointed out that it would be “naïve” to think this alone will sort out the problems in the energy market, and called for “A
fundamental competition review of the energy market that questions whether its
very structure fails consumers”.