Partner Article

Ofgem to tackle "poor behaviour" suppliers

Energy regulator Ofgem has set out plans to tackle problems of tariff complexity and a lack of transparency among energy suppliers, saying they aim to rid the market of “poor behaviour.”

Suppliers would be limited to no more than four core tariffs for each fuel and ensuring all tariffs are expressed as a standing charge and single unit price.

Ofgem are looking to introduce a cross market Tariff Comparison Rate to compare tariffs “like-for-like” across the market.

Further standards on clearer bills, annual statements and price notification letters, will also be introduced.

Chief Executive of Ofgem, 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.

“We have spoken to thousands of consumers who have helped us shape this package through a period of extensive consumer research, and are very grateful for their input.

“I am glad to say suppliers have already responded with some initiatives, but these don?t go far enough. Ofgem is determined to press forward with proposals to deliver for consumers the most far-reaching shakeup of the retail energy market since competition was introduced.”

Phil Crossley, of utility call centre provider Teleperformance, commented: “In the future energy suppliers will offer consumers broadly similar tariffs, which means price alone will not be an incentive to switch providers.

“Choice will become a matter of service and support. Energy companies will develop their customer relationships and services, provide easier access to channels of communication and offer effective support for their customers to reduce energy consumption.”

This was posted in Bdaily's Members' News section by Tom Keighley .