Simplifying tariffs is the right first step

The Big Six has started to change the way it operates, which has been noted by consumer groups. Last night British Gas MD, Phil Bentley, conceded that they “had not […]

Register now!

By Tom Gibson

The Big Six has started to change the way it operates, which has been noted by consumer groups. Last night British Gas MD, Phil Bentley, conceded that they “had not made it easy for customers” and the confusing tariffs used by power suppliers were the cause for a lack of trust.

Adam Scorer, Consumer Focus Director of Policy & External Affairs said: “The penny has dropped. We welcome the news that energy companies recognise that the ways in which they have constructed and sold tariffs has confused, antagonised and alienated consumers. Energy is a simple product, it should also be a simple market. Reducing the number and complexity of tariffs won’t bring prices down by itself, but it will help people understand their energy costs and get the best deal available.”

British Gas today pledged to create just two types of tariff in a bid to make it easier for their customers, in response to recent criticisms from Ofgem, Government and the public.

Ian Marlee, Ofgem’s Partner for Markets said: “All suppliers must play it straight with consumers and we are pleased to see BG, SSE and E.ON responding to this by launching specific initiatives to improve transparency for customers.

“As part of urgently restoring confidence we are calling on all suppliers to get behind Ofgem’s reforms to deliver what consumers tell us they want; a simpler,more competitive energy market. Without the decisive break with the past that Ofgem’s reforms offer consumers will continue to mistrust energy suppliers.”