New energy proposals could cost us £55 million
Energy tariff reforms could well mean more expensive bills for upwards of 3.4 million homes as we all collectively struggle to work out which product is cheapest. Ironic, given that Ofgem's proposed tariff comparison rate (TCR) aims to simplify the whole process.
We'll eventually be advised on the best deal based on a medium usage of gas and electricity, however, only a quarter of the population uses this much energy which means the majority of us could be directed toward tariffs that could be more pricey.
Richard Lloyd, executive director at Which!!!! said: "Rising energy bills remain one of consumers' top financial concerns yet six in 10 of us have never switched supplier as people are left baffled by the vast array of complicated tariffs."
"These current proposals are far too complicated and will fail to achieve their aim of making it easier for people to find the best deal, with three-quarters of people being asked to compare prices that are not based on their energy usage."
Lloyd added: "The Government should introduce single unit prices for each energy tariff so people can easily see the best deal for them at a glance. Only then will people have the confidence to switch, injecting much-needed competition into the broken energy market."
An Ofgem spokesman said: "Ofgem's reforms will deliver a simpler, clearer and fairer energy market for consumers and will make it much easier for consumers to choose the right deal for them. Our key goal is to try and get consumers engaged with the market as 70 per cent are currently not taking part.
"Which? is misrepresenting the purpose of the tariff comparison rate and how it fits into the full scope of Ofgem's reform package. The tariff comparison rate acts as a prompt to consumers to take a look at comparative deals. The tool is similar to the 'typical APR' used in financial services marketing. But it is partnered with personalised consumption information necessary to make a full and accurate cross market comparison, which every supplier must provide via bills and annual statements."