Deputy prime minister Nick Clegg will say later today that the big six firms have agreed, from Autumn, to write to customers once a year to tell them whether they are on the right tariff and how to get it. They will write twice a year to vulnerable customers that qualify for the Warm Home Discount scheme.
Customers will also get barcodes on bills so that those with smart phones can scan the barcodes, see what deals are available and switch to them “in a matter of minutes”, according to transcripts of Clegg’s speech. Customers will also be offered the best tariff if their contract comes to an end and if they contact their supplier at any time to ask, a move welcomed by consumer groups.
In response to the speech, Ofgem said it welcomed the government’s initiative and pointed out that its own retail market review contained proposals to make it easier for consumers to choose the right tariff. “We urge suppliers to back our reforms as a first step in re-building customer trust in energy suppliers,” the regulator said in a statement.
The deputy prime minister is also set to highlight a trial between independent energy supplier First Utility and technology firm Opower, which will encourage people to use less energy by showing how much energy similar households are using. A similar scheme in the US has reduced energy consumption by around 2 per cent, according to the firm.
Energy companies have also agreed to participate in a second ‘big energy week’, organised by government and Citizens Advice.