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Energy tariffs 'simplified'

Changes to energy tariffs that the regulator hopes will make it "simpler and fairer" for customers are coming into force today. They include the number of tariffs available will be reduced to just four per customer for both gas and electricity.

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How Ofgem plans to create simpler energy tariffs

Energy regulator Ofgem hopes changes, including banning suppliers from offering complex tariffs, will help simplify the market for the consumer.

Here are some of the key points:

Simpler tariffs - from 1 January

  • Suppliers will be limited to offering up to four "core" tariffs per fuel (electricity and gas) and per meter type
  • Complex multi-tier tariffs are banned and suppliers must structure their tariffs using only a single unit rate

Clearer information - to be introduced from April 2014

  • New rules will be in place requiring suppliers' routine communications to consumers to be clear, easy to understand and personalised to them
  • Suppliers will be required to give all their customers personalised information on the cheapest tariff they offer for them
  • Suppliers will use a new Tariff Comparison Rate, in bills and a range of other communications, to help customers compare tariffs at a glance
  • Ofgem is also requiring suppliers to provide personalised cost projections for the following 12 months based on the customer's actual, historic consumption

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