One of the proposals Ofgem has set out includes suppliers using the Tariff Comparison Rate (TCR) – a guide on how much a tariff would cost based on medium energy usage – has been heavily criticised.
Richard Lloyd, executive director of Which?, said: “While these new rules will help make the market simpler and fairer it’s hugely disappointing to see the regulator sticking to its fundamentally flawed idea of how energy prices should be presented.”
Ann Robinson, director of consumer policy at Uswitch.com, added: “The TCR will actually confuse customers rather than help them.”
Consumer Futures was more supportive of the plans, which include limiting suppliers to four core tariffs per fuel type per payment method.
However, Adam Scorer, director of policy and external affairs, said: “It would be naive to assume that this would sort out the energy market once and for all. The market needs to earn consumer confidence.”
Trade association Energy UK “supports the thrust of Ofgem’s proposals”, adding in a statement “the reforms need to be allowed to bed in, with a period of stability for consumers.”
The RMR proposals also allow the suppliers to offer consumers a dual fuel discount while obliging them to put customers on dead tariffs onto the cheapest variable deal if it is cheaper than their previous tariff.
Ofgem’s plans also see the exemption from the tariff cap for white label supplier extended by six months until 31 December 2014, by which time they will have to offer the same deals as their parent supplier or obtain their own supply licence.
Suppliers have also been given for their fixed term tariffs which were available before 1 May 2013 and signed before 15 July 2013, meaning they are not limited by the forthcoming cap.
These deals have been completed, they will be bound by the new rollover rules, which ban price increases or other changes during the contract, prevent an automatic rollover onto a new fixed deal, and offer consumers a fee-less exit and 49 day switching period at the end of their deal.
Andrew Wright, senior partner for markets at Ofgem, said: “Now that our proposals have been confirmed it also gives suppliers a unique opportunity to forge ahead, building on the progress some have already made, and begin to restore trust in the energy market.
“Further hesitation will only delay benefits for consumers.”