Energy suppliers will have to inform customers they could get a cheaper deal by switching to their partner brands from July under final proposals published today.
Companies such as supermarkets that sell gas and electricity from other suppliers but don’t own a licence to supply it under their own brand name are called “white label” providers.
Examples include Sainsbury’s Energy’s partnership with British Gas and M&S Energy’s with SSE.
Under Ofgem’s rules, suppliers already have to tell customers about their cheapest deals but they will be extended to white label tariffs starting this summer.
Rachel Fletcher, Ofgem Senior Partner said: “Selling energy through white label brands has the potential to increase consumer choice and engage consumers to shop around through well-known brands. But it is important that consumers are given the complete picture about all their supplier’s tariffs.
“That is why we are acting to reduce barriers to white labels entering the market and ensure suppliers have to tell consumers what their cheapest deal is, whatever brand it is marketed under.”
There are no limits to the number of white label partnerships suppliers can have.