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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