Ofgem plans to simplify energy tariffs and allow consumers to compare prices. However, customers will be advised based on “medium usage” of gas and electricity, which only a quarter of people actually use, according to Which? research.
The consumer group argues that more than 3.4m households could end up paying too much for their energy.
“These current proposals are far too complicated and will fail to achieve their aim of making it easier for people to find the best deal, with three quarters of people being asked to compare prices that are not based on their energy usage,” said Richard Lloyd, executive director at Which?.
However, Ofgem refutes the claims, saying that the new proposals will help people engage with the energy market.
“This particular analysis misrepresents our plans, and the statistics regarding a supposed loss to consumers are meaningless,” said the regulator.