Decc sets out additional tariff reforms

Responding to a consultation, Decc is looking to “build” on Ofgem’s Retail Market Reform (RMR) by proposing customers on a fixed term deal must be moved to the cheapest variable rate tariff when their deal ends.

Decc also proposes that suppliers have to make it clear what is the cheapest deal for consumers that suits their preferences (such as a green tariff), and give them an opportunity to switch; as well as requiring them to provide information that can be read on an electronic device – such as a smart phone.

More powers would be given to Ofgem to “protect against poor practice by switching sites, while the government will consider what can be done to encourage more collective switching.

A Big Energy Saving Network, which would coordinate and advise consumers on switching and getting welfare support will be set up with £900,000 of government funding.

Energy secretary, Ed Davey, said while Ofgem’s RMR reforms are “fundamental” to encourage engagement in the energy market, the government needs to “do even more to put the best deals on a plate for people”.