The strained relationship between energy suppliers and their customers will come under further pressure over the coming months and years as bills continue to rise, windfarms continue to be built, and serious questions about security of supply are asked. Much of this is due to wholesale prices and environmental policy beyond the energy suppliers’ control but nevertheless, they will take the blame for it.
So the publication this week of the detail around Retail Market Reform presents a timely opportunity. Mistakes have been made – not least the PM’s unscripted intervention last October – and the resulting proposals are far from perfect. Their stated aim is to simplify the tariffs available to customers. However, a quick glance at the details (four tariffs for each fuel type, for each payment type, discounts available for dual fuel and paperless accounts) makes it clear that simplicity does not lend itself to this matter.
Be that as it may, the reforms will go ahead because of the political will behind them. And the pragmatists in the energy sector will have to do their best to make them work. This will mean suppliers engaging with their customers in a new way. It may even mean them helping their customers save money by switching them on to a cheaper tariff. It should certainly mean them introducing new and more transparent bills so that customers understand they are paying in to network charges, social tariffs and renewable subsidies as well as the pockets of the supplier. And then it will be time to talk about trust.
Ellen Bennett
This article first appeared in Utility Week’s print edition of 28th June 2013.
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