Simpler terms must be offered by energy firms

Between 1 July 2019 and 31 December 2019, at least 10% of people who switched energy supplier for both gas & electricity with Uswitch saved £479 or more.

Energy regulator Ofgem has told energy companies that it must make simpler tariffs to help both business and home customers compare gas and electricity prices.

According to the BBC, Ofgem has found that complicated tariffs have been confusing customers since 2008 and have increased from 180 to more than 300 in the last three years.

The six main suppliers of energy in the UK should face more competition from other companies Ofgem said and found evidence that they responded to rising costs more quickly than they reduced prices when costs fell.

If companies fail to meet the new guidelines set by Ofgem they could be referred to the Competition Commission.

Alistair Buchanan, chief executive of Ofgem, said: “Consumers must have confidence that energy companies are playing fair at a time when they are being asked to foot the £200bn bill to pay for the investment Britain needs to ensure secure and sustainable energy supplies.”

Figures have suggested that energy supplier's net profit margin per person rose from £65 to £90 from September to November, a total rise of 38 per cent.

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