Partner Article

Ofgem plans reshape of energy pricing schemes

Profit margins at energy firms have risen dramatically, with companies making an average of £125 per customer per year.

According to BBC reports, energy regulator Ofgem believes this will fall to around £90 next year, when it forces suppliers to simplify price tariffs.

Average bills have risen to £1,345 annually, but as part of Ofgem’s simplification plan energy firms will be forced to have a “no frills” tariff, consisting of a standard charge plus an energy unit charge.

It is hoped that this will make it easier for the consumer when they purchase energy, as all they will have to compare between suppliers is the unit energy charge.

Ofgem will still allow more complicated packages, although they would only be available for a fixed period, and price increases would be prohibited for the duration of the deal.

This was posted in Bdaily's Members' News section by Ruth Mitchell .