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News & views

Ofgem simplifies tariff mayhem

[14 Jan 2014] It’s good to see that Ofgem, the UK’s energy regulator, has moved to limit the bewildering range of tariffs offered to consumers by suppliers, which has caused widespread confusion. They must now offer no more than four tariffs, of which one must be a standard variable-rate deal. Ofgem has banned two-tier tariffs with high charges for an initial number of units. Instead there must be a single unit rate and a daily standing charge. In April, suppliers will have to tell customers which of their tariffs is the cheapest.

At present, the cheapest tariffs are available from smaller suppliers like First Utility and Ovo as they do not have to pay the same social and green taxes as their big rivals. Comparison sites will continue to offer discounts even though suppliers have been banned from offering cashback deals direct because they make comparisons too complex. (Source: Sunday Times, 5 Jan 2014)

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