Ofgem unveils energy reforms

A number of British consumers may be able to cut their energy tariffs from December under rules proposed by regulator Ofgem which it hopes will encourage competition.

Lawrence Slade from the industry trade body Energy UK has told ITV Daybreak that "these reforms start putting customers first again.

"The really key thing here is to help customers get on the best tariff for their circumstances."

Read more: PM pledges cheapest energy tariffs to customers

• Ofgem have told suppliers to limit themselves to four "core" tariffs each for electricity and gas and for each type of payment.
• All information suppliers send to consumers must be "simplified, more engaging and personalised".

• Suppliers will use a new Tariff Comparison Rate (TCR), which the regulator claims will help to simplify the selection process for consumers.

• And new enforceable standards of conduct will enable Ofgem to take action against suppliers where they have failed to treat customers fairly.

Ofgem proposals for a "simpler and fairer" energy market have drawn a mixed response from consumer groups, who say the changes "could mislead customers."

The reforms are expected to come into effect from the summer, however consumer group Watch? has said it "could mislead millions into paying over the odds for their energy."

Which? executive director Richard Lloyd said: "While these new rules will help make the market simpler and fairer it's hugely disappointing to see the regulator sticking to its fundamentally flawed idea of how energy prices should be presented.

"This will fail to help people find the best deal easily and could even mislead millions into paying over the odds for their energy.

"Energy prices are the biggest worry for consumers and our research shows overwhelmingly that people find it easier to spot the cheapest deal for them when prices are presented clearly, simply and consistently - just like on the petrol station forecourt."

Ofgem will today announced its final proposals for reforming the retail energy market, which aim to reduce and simplify the number of tariffs available for consumers.

The regulator has told suppliers to limit themselves to four "core" tariffs each for electricity and gas and for each type of payment, while all information suppliers send to consumers must be "simplified, more engaging and personalised".

Suppliers will use a new Tariff Comparison Rate (TCR), which the regulator claims will help to simplify the selection process for consumers.

And new enforceable standards of conduct will enable Ofgem to take action against suppliers where they have failed to treat customers fairly.

Read more: PM pledges cheapest energy tariffs to customers