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.

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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.