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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.

Big energy fine as SSE tries to trick customers

The Gas and Electricity company SSE was forced to apologise after being hit with a record penalty for deliberately misleading customers. The energy watchdog fined the firm £10 million for what it called "prolonged and extensive" mis-selling.

As our Business Editor Laura Kuenssberg reports, they tried to trick customers into switching to them.

Former SSE staff 'taking advantage' of customers

ITV News spoke to one of those who did the selling for SSE. He spoke anonymously, and only stayed in the job for a short time:

"You would go to the door and you would say, we realise you're on a high energy tariff - and basically that wasn't true, we didn't know what tariff they were on, or what company they were with. All we knew was their name and address.

"Once you got into the script, you would wipe your feet on the mat and point at their groin so they would move out the way so you could walk into the house.

"I used the first two or three lines [of the script] to get to know the customer, but other than that I found it very difficult - I felt I was taking advantage of a human being, not just a customer."

Former SSE staff member
Former SSE staff member Credit: ITV News

In a statement, SSE says it "does not regard behaviour of the kind alleged as acceptable and is committed to the highest standards possible in sales, backed up by our industry-leading Sales Guarantee."

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'Very small number' of M&S Energy customers affected

A spokesman for M&S Energy has admitted that some of its customers were affected by SSE mis-selling, but insists the number accounts for less than one percent of the total:

We are aware that today’s announcement by Ofgem regarding SSE may have unfortunately affected less than 1 per cent of M&S Energy customers.

SSE has apologised unreservedly to those affected and has taken significant action to remedy the situation and ensure this will not happen again.

Anyone who believes they may have been affected should contact SSE directly as soon as possible.

– M&S Energy spokesman

The company refused to reveal exactly how many customers were affected, but said it was a "very small number".

Read: SSE 'mis-sold under one of UK's most respected brands'

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