Ofgem launches consultation on changing energy market

Ofgem has launched a consultation which sets out its plans to make the energy market work better for consumers in the next financial year. The proposed reforms will help improve competition and […]

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By Jacqueline Echevarria

Ofgem has launched a consultation which sets out its plans to make the energy market work better for consumers in the next financial year.

The proposed reforms will help improve competition and consumer trust in the energy market, said the regulator.

They include setting a price cap to start in April to protect prepayment meter customers which will save them up to £75 a year.

It follows the recommendation from the Competition and Markets Authority earlier this year.

Ofgem has also pledged it will be carrying out “extensive trials” to find the most effective ways to help consumers shop around for better energy deals and get the most out of smart meters.

Dermot Nolan, Ofgem Chief Executive said: “Over the next year we will take big steps towards delivering a better energy market for consumers.

“However, the key to a better energy market is trust. Ofgem will play its part by clearly explaining how the market works and building more confidence in the switching process but energy suppliers also need to step up to the plate and work with us and consumer groups to create an energy market which works for everybody, not just those who frequently switch to get the best deals.”

The consultation is open until February next year.