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Suppliers have to do more to help all their customers get a better deal

Ofgem is requiring suppliers to take part in trials to find out the best ways of helping disengaged customers get a better deal.

  • Ofgem requires suppliers to trial the best ways to reach disengaged customers 
  • Aim is to help customers ditch uncompetitive tariffs 
  • Ofgem makes clear that suppliers have a special responsibility to customers in vulnerable circumstances. 

The trials are one of the remedies put forward by the Competition and Markets Authority (CMA) following its energy market investigation. The CMA found that two-thirds of customers who are on standard variable tariffs are paying far more than they need to. 

Ofgem is working to deliver a smarter, fairer, more competitive energy market. The CMA recommended that Ofgem lead a programme of trials to identify more effective prompts and information to help customers get more out of the market. 

The rules mean that Ofgem can require suppliers to undertake trials, which will start by this summer. They will cover issues including:

  • Suppliers telling customers what the cheapest deals are across the whole market
  • Changing the name of standard tariffs, for example, to ‘out of contract’ tariffs 
  • Different ways of presenting information in domestic bills
  • Changes to information customers receive once they come to the end of a fixed deal.

Rachel Fletcher, senior partner, consumers and competition said: “We must end the two- tier market where only a third of people get the best deals, while the remainder do not benefit from competition. 

“By overseeing these trials, we will make sure that suppliers are doing everything they can to test ways to help these customers find better deals. This could be through switching supplier, or helping loyal customers find cheaper tariffs with the current supplier. 

“As the market develops, we want to ensure that customers in vulnerable situations are not left behind. So we are making clear that suppliers have a special responsibility to these customers. We are proposing an enforceable principle for suppliers to make all efforts to identify and support them.” 

In December, Ofgem published data on the number of customers on standard variable tariffs per supplier, and the gap between these tariffs and some of the cheapest in the market. This adds to transparency around this issue.   

Notes to editors

  1. Facts and figures about switching, savings and the number of suppliers active in the market
  2. Yesterday Ofgem has published:

About Ofgem

Ofgem is the independent energy regulator for Great Britain. Its priority is to make a positive difference for consumers by promoting competition in the energy markets and regulating networks.

For facts, figures and information about Ofgem’s work, see Energy facts and figuresor visit the Ofgem Data Portal.

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Further information for media

For further information, contact:

Chris Lock: 0207 901 7225

Ruth Somerville: 0207 901 7460

Media out of hours mobile: 07766 511470 (media calls only)

 

Channel website: https://www.ofgem.gov.uk/

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