Ofgem tells energy companies to straighten up



Ofgem

Ofgem

Energy regulator Ofgem has warned the big six energy suppliers that the need to straighten up their tariff offerings and make things simpler for customers when comparing prices.

They also recommended that the six companies as they are should face more competition.

The six companies currently generate the majority of energy provided in the country, but Ofgem plan to make them auction off a fifth of this energy, in a ploy to make way for lot’s more smaller companies.

If energy firms don’t comply with the new systems, they will be referred to the Competition Commission, who can hit them with heavy fines.

Ofgem claim that customers are currently “bamboozled” by the many different tariffs, and there are now over 300 different ones to choose from, compared to just 180 in 2008.

Ofgem argues that competition in the market was heavily stifled but a mixture of lack of transparency, and a mixture of complicated tariffs that make it impossible for customers to compare pricing on a like for like basis.

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