Energy bill changes warning

Consumers could pay an extra £55 million for energy bills under new proposals from the industry regulator, the consumer watchdog Which? has warned. It claims 3.4 million households could be affected.

Ofgem: New reforms will be 'clearer and simpler'

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.

– Ofgem spokesman

Which?: 500,000 could be advised on wrong tariffs

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.

– Richard Lloyd, executive director at Which?

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Survey: Higher energy costs for millions of households

New Ofgem proposals could see consumers pay an extra £55 million for energy bills, research has found.

Energy tariff reforms could lead to higher costs for more than 3.4 million households, as they struggle to identify the cheapest energy tariffs, research by Which? said.

The tariff comparison rate (TCR) aims to simplify energy tariffs Credit: Rui Vieira/PA Wire

The proposed tariff comparison rate (TCR) aims to simplify energy tariffs, allowing consumers to compare tariffs across the market.

Consumers will be advised on their best deal based on medium usage of gas and electricity, but only 26% of consumers use this level of energy.

Which? said as a result three quarters of customers will be directed to tariffs unsuitable for them.