Ofgem crackdown on energy suppliers

Energy regulator Ofgem has released details of its new regulations for energy suppliers.

The new rules will empower consumers to make better and more informed decisions regarding their energy supply, and will deal with flaws in the market revealed by extensive market research carried out by the regulator.

Certain members of society who are the most vulnerable will be much better off under the new regulations, particularly low-income households and the elderly.

The obligations of suppliers under the new rules will focus on a ban on unjustified price differences, and will include:

Customers will receive an annual statement which clearly states their tariff name, their total energy consumption and a reminder that they are free to switch providers at any time;

Energy providers are to provide customers with simple information on their tariffs to make price comparison easier, including an at-a-glance price score card, allowing customers to make informed decisions regarding their supplier;

There will be a crackdown on doorstop sales, which will now have to be followed by a written quotation, and proof that the new sale is better than the existing tariff;

Greater transparency to give customers assurance that the market is competitive and fair.

Alistair Buchanan, Chief Executive of Ofgem, said,

“This is an emphatic move by Ofgem to clear the decks of obstacles that prevent consumers from getting access to the best offers.

“All consumers will be given greater power in the market and small businesses in particular will have a stronger hand to play in the market.”