OFGEM today announced its final proposals for reforming the retail energy market, which plan to reduce and simplify the number of tariffs available for consumers.
The energy regulator has suggested four tariffs for both electricity and gas, with a ban on certain expensive tariffs, to encourage a fairer market.
Ofgem proposes new “enforceable standards of conduct”, which will enable the regulator to take action against suppliers when they are seen to have treated customers unfairly.
‘Big six’ energy companies such as E.ON, British Gas owner Centrica and SSE have said that they support simpler, fairer tariffs and are reviewing the report.
It is understood that the final consultation document of over 100 pages was only given to the ‘big six’ yesterday, but one source said that the report appears to confirm details of the proposals rather than introduce any new major changes.
Consumer watchdogs have supported the proposed reforms but said that they do not go far enough in simplifying the market.