Reducing the number of tariffs for each supplier would still provide enough space for suppliers to compete, and would make it easier for more consumers to engage and exercise informed choice. It is a sensible move and suppliers could do it now. The success of this initiative will depend on how energy companies implement the change and how the regulator Ofgem takes it forward.
– Adam Scorer, Director of Policy at Consumer Focus
There is a risk of unintended consequences and in particular a general levelling up of prices. Ofgem will need to police the behaviour of suppliers and be vigilant about the level of margins that suppliers take from their remaining tariffs. Consumers must not end up as net losers.