OFGEM, the regulator of Gas and Electricity markets proposed Friday a radical reform model that will provide energy customers with simple tariffs, clearer bills and annual statements.

MAIN FACTS:

-All consumers will be able to compare prices easily and those seeking more innovative tariffs will be free to choose them

-Consumers wanting a no frills tariff will get a simple unit price and a fixed standing charge set by Ofgem

-Consumers seeking more innovative tariffs will get protection against price increases for the duration of their deal

-Standardized price information will allow consumers to compare easily standard and more innovative tariffs

-Ofgem welcomes recent indications from some suppliers about the importance of restoring consumer confidence and looks to suppliers to get behind its reforms

-Average dual fuel bill now stands at GBP1,345 and, following recent price rises, estimated suppliers' margins have peaked at around GBP125 per year, but are likely to fall back next year.

-In November detailed proposals to reform the energy market to help the businesses sector

-In December further decisions on proposals on liquidity to break the stranglehold of the Big Six in the wholesale electricity market

-In the New Year the findings of an independent report into making energy company accounts more transparent.

-Ofgem is proposing to give consumers a much clearer choice than the 400 tariffs currently available.

-Ofgem is also seeking new powers from Government to provide consumer redress so that it can award compensation if suppliers break the rules and the Department of Energy and Climate Change has confirmed that it is looking at this issue.

-Ofgem has also asked the Government for responsibility for running the Confidence Code for price comparison sites, which ensures that consumers get reliable online advice on changing supplier and the power to report on company performance.

-By Zechariah Hemans, Dow Jones Newswires; 44-20-7842-9411; zechariah.hemans@dowjones.com