- Plans to protect vulnerable consumers, including the option of a safeguard tariff
- New reforms to make switching easier so consumers can get a better deal
- Proposals to cap warrant charges to install pre-payment meters and ban these charges altogether for the most vulnerable
Despite the number of switches being at a 9 year high, many consumers still feel it’s too much of a hassle, therefore rarely switch.
As a result, Ofgem is taking action!
‘Check Your Energy Deal’ – Switching Service
Firstly, Ofgem will be trialling a new online switching service called ‘Check Your Energy Deal’. This service will help those who havebeen on poor tariffs for 3 years or more find a cheaper deal.
Consumers will be able to see how much they can save just by entering their address, postcode and name of their current supplier. Once the consumer is happy the new service makes switching easy with only a few clicks.
For those who aren’t online, Ofgem is also testing if they should write to customers about cheaper offers, prompting them to shop around and switch tariff.
Ofgem has also announced separate proposals, one capping how much suppliers can charge customers for installing a pre-payment meter to £150 and two banning these charges altogether for the most vulnerable.
These meters are usually installed under warrant when customers don’t pay their energy bill.
OFGEM CEO, Dermot Nolan said:
“Protecting vulnerable consumers is a priority for Ofgem. We are committed to ensuring that the more disadvantaged in society are not left behind as we move towards a smarter, more competitive energy market.
“That’s why we are starting new work to protect vulnerable customers, including the option of introducing a safeguard tariff for them.
“Suppliers must also do more to get all their consumers, particularly those on poor value standard variable tariffs, a better deal. We are pressing ahead with a raft of reforms to make it even easier for people to switch no matter how they choose to shop around.”