OFGEM Propose Radical Reforms To Provide Simple Tariffs, Clearer Bills
14 10월 2011 - 3:46PM
Dow Jones News
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