Energy Regulatory presents proposals for "radical reform" of the energy market because it shows the net margin of a typical customer has increased from 15 pounds in June £ 125 in October
Ofgem revealed that six major utility companies are £ 125 per year for each of its dual fuel customers. This figure has increased by 733% in just four months.
Energy Regulatory charges start simple and clear accounts in the center of proposals for "radical reform" of the energy market this morning and warned the lack of transparency is stifling competition in the market, apparently, as evidenced by a profit margin increased by 1.3% in the invoice average of June to 9% in October, after a wave of rate hikes.
Ofgem stated its intention would be easier for consumers - who currently faces charges over 400 to choose from - compare prices. The watchdog will be fixed service charges over which companies will provide a variable price per unit, which is clearer and easier to compare prices. This means no complicating factors such as discounts, with the only change in a bill that the price per unit of gas or electricity.
"So the higher the price the bill - no exceptions," said Ofgem
The regulator also found that the quantities of household energy bill of the average £ 1,345 per year to 12 months, compared with £ 1170 in June In the news that consumer groups have long argued that indignation energy companies make too much money by the cash-strapped customers, Ofgem also revealed that during the same period, the net margin of typical customer double standard fuel rate increased compared to year 15 pounds, measured in June at 125 pounds in October.
Yesterday, an undercover investigation by consumer body Which? revealed that the number of energy tariffs available to owners is so great and complex options, the staff of energy companies have no idea what the best offer.
What? called each of the six major energy suppliers 12 times a week for advice on the best rate. Despite being clearly asked for the cheapest option in each case, almost a third of calls from companies do not offer their lowest rates. The staff also provided advice on the potential savings questionable money-back auctions and fixed price.
- Alistair Buchanan, Director General of Ofgem, said a unit of £ 200 billion investment in green energy future for the UK only pressure on the accounts, the addition of new impetus to the need for reform.
"That's why a radical break with the past is necessary. Ofgem tariff reforms offer the fastest way to create a market where consumers can be confident that prices are set by effective competition. Suppliers Ofgem said they want to restore confidence in the industry and now have the opportunity. "
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