Energy regulator Ofgem has responded to claims that customers will spend more money on their energy bills following confusing changes to tariffs.
An Ofgem spokesman said that Ofgem's reforms will deliver a "simpler, clearer and fairer energy market for consumers", making it easier for them to choose the right deal for them.
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. Ofgem's reforms will also see suppliers cheapest deals on your bill.
Around 500,000 low energy users, who tend to be on the lowest incomes, could be advised on the wrong tariffs, under new proposals by Ofgem, 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.