New energy proposals could cost us £55 million

22 April 2013

Centrica-and-British-Gas--001 If you though our energy bills were expensive enough, we could end up paying an extra £55 million thanks to new Ofgem proposals.

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."

TOPICS:   Utilities   High Street News

4 comments

  • ALi
    i am currently reviewing my energy supplier, i am getting charged over £600 a month (on EDF standard tarrif) and i dont understand why... i KNOW i use electricity more than gas yet my gas bills are soaring high! I got a quote for a standard tarrif from EDF and their Estimated Annual bill is £1382, but according to the EDF bill i get charged around £1200 for only 2 months! in mind has gone fuzzy with all these traffic and costs and i get to a point where i dont know what to do or what is going on with my energy bills...
  • james d.
    Its not too complicated to switch now, in fact, it's about as easy as it possibly could be. People are just lazy. Competition only works if you walk away when you are overcharged. If you don't switch you have no-one to blame but yourself.
  • Celebrity S.
    An Ofgem spokesman said "blah blah blah" to justify their existence , and the more they bleat on the more we get screwed by suppliers inventing ever more money grabbing tariffs Also instead of Mr Lloyd from Which!!! saying the Government should introduce single unit prices for energy, well, maybe he should have mentioned that some suppliers already have done ...Ebico to name one have done this for many Years already........ Ofgem and Which!! , a waste of energy both of them.
  • chewbacca's m.
    @bummer Will I do?

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