Ofgem already requires suppliers to tell customers if they offer a cheaper deal, but they have not been required to include deals which are offered through a non-license holding company as part of a so-called ‘white label’ arrangement.
Currently, British Gas supplies energy through the white label Sainsbury’s Energy, and SSE holds a white label arrangement with M&S Energy and Ebico.
Ofgem has allowed suppliers to offer an unlimited number of white label tariffs to the market, despite imposing a four-tariff cap on their direct offerings, but until now had not expected the same level of transparency for these arrangements.
“Selling energy through white label brands has the potential to increase consumer choice and engage consumers to shop around through well-known brands. But it is important that consumers are given the complete picture about all their suppliers’ tariffs,” said Ofgem senior partner Rachel Fletcher.
“That is why we are acting to reduce barriers to white labels entering the market and to ensure suppliers have to tell consumers what their cheapest deal is, whatever brand it is marketed under,” Fletcher added.
The new rules come into effect from July.