London (AFP) - Reforms to energy tariffs aimed at creating a simpler market will help restore consumer confidence, regulator Ofgem said on Thursday.
Simpler tariffs have been introduced from January 1, and suppliers have been limited to four core tariffs per customer for both gas and electricity.
Discounts to energy tariffs will also be made easier to understand. More changes will be introduced from April, when suppliers will have to inform consumers which tariff is cheapest for them. A Tariff Comparison Rate will also be introduced, allowing customers to easily compare tariff rates.
Bills will include a "personal projection", which will forecast what a customer will pay based on their usage or a best estimate. Energy consumers will also be notified of price increases. Ofgem chief executive Andrew Wright said he hopes the changes will ultimately drive down prices.
He said: "The aim of our simpler, clearer, fairer reforms is to ensure competition bears down hard on prices. Profits are not an entitlement, they should be earned by companies competing keenly to offer consumers the lowest prices and the best service.
"Now it is up to suppliers to build on our reforms to restore consumer confidence in the energy market."
Consumer groups have welcomed the reforms. "Consumers need a market they can trust and this reform package brings that close," said Mike O'Connor, chief executive of consumer representation organisation Consumer Futures.
But O'Connor urged a review to find out whether the structure of the market fails consumers, and called for further programmes of energy efficiency.
yahoo.com
Simpler tariffs have been introduced from January 1, and suppliers have been limited to four core tariffs per customer for both gas and electricity.
Discounts to energy tariffs will also be made easier to understand. More changes will be introduced from April, when suppliers will have to inform consumers which tariff is cheapest for them. A Tariff Comparison Rate will also be introduced, allowing customers to easily compare tariff rates.
Bills will include a "personal projection", which will forecast what a customer will pay based on their usage or a best estimate. Energy consumers will also be notified of price increases. Ofgem chief executive Andrew Wright said he hopes the changes will ultimately drive down prices.
He said: "The aim of our simpler, clearer, fairer reforms is to ensure competition bears down hard on prices. Profits are not an entitlement, they should be earned by companies competing keenly to offer consumers the lowest prices and the best service.
"Now it is up to suppliers to build on our reforms to restore consumer confidence in the energy market."
Consumer groups have welcomed the reforms. "Consumers need a market they can trust and this reform package brings that close," said Mike O'Connor, chief executive of consumer representation organisation Consumer Futures.
But O'Connor urged a review to find out whether the structure of the market fails consumers, and called for further programmes of energy efficiency.
yahoo.com
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