What are the changes?
Ofgem is trumpeting its objective of a ‘simple, clearer and fairer’ energy market. The main planks of reform are as follows:
Limit of four ‘core’ tariffs – for each of gas and electricity, and for each payment type. Suppliers will also be able to offer extra fixed term tariffs via collective switching schemes.
End of ‘dead’ tariffs: If an old tariff isn’t ‘value for money’ then those customers will be moved onto their supplier’s cheapest variable deal.
Suppliers must give customers personalised info on the cheapest tariff they offer for them and use the new Tariff Comparison Rate in all communications with customers.
Ofgem will have more power to take action and fine suppliers who treat customers unfairly.
A ban on price increases during the term of a ‘fixed-price’ contract.