Detailed tough new standards for energy suppliers to make the market simpler and help consumers find the best deal has been published today.
The reforms are part of Ofgem’s plans for a “simpler, clearer and fairer” market and will tackle problems of consumer confusion over energy tariffs, poor supplier behaviour and lack of transparency in the energy market.
This includes four “core” tariffs for both gas and electricity and personalised information on the cheapest deals available for all customers. The regulator said the proposals have been confirmed and power companies need to follow it up quickly else risk further damage to trust.
Andrew Wright, Senior Partner for Markets at Ofgem said: “Our reforms today are the blueprint for the simpler, clearer and fairer energy market that consumers deserve. This will provide them with the choices they want alongside the simplicity they need. They have been delivered following two years of engagement with consumers and industry in the most comprehensive ever review of the retail market.
“Now that our proposals have been confirmed it also gives suppliers a unique opportunity to forge ahead, building on the progress some have already made and begin to restore trust in the energy market. Further hesitation will only delay benefits for consumers.”
Ofgem said a fairer market is also just weeks away as its standards of conduct to ensure consumers are treated fairly are due to come into force this summer. Once in place, companies could face investigation and possible fines if customers are treated unfairly.
Earlier this year the energy regulator was given new powers to protect wholesale gas and electricity markets from being manipulated.