The group says its proposals stop short of full price regulation, but would enable consumers to have an idea of what a fair price is for their energy bills by publishing an independent ‘price to beat’ benchmark.
This could also spur energy companies to compete with the benchmark to offer consumers a better deal, the group said, whilst increasing consumer trust.
“Big reforms are needed to restore confidence in the industry and to guarantee fairer energy prices for consumers,” said Which? executive director Richard Lloyd.
“The Competition and Markets Authority should now investigate how the independent regulator could establish a price people can trust that will spur suppliers to compete and reassure worried consumers that they’re not being ripped off. Meanwhile, energy companies should use simple pricing to increase confidence in the industry and boost competition by encouraging switching,” Lloyd added.
The latest research from Which? reveals just 18 per cent of those surveyed trust suppliers to charge a fair price for their energy and more than half say it’s difficult to compare the prices of different energy deals.
The CMA are expected to make its final recommendations for the energy sector public at the end of 2015.