How tariff and service changes have made it easier for consumers to switch energy supplier
Updated 12 February 2016
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1. Reduction in the number of tariffs
Previously, energy suppliers could offer any number of tariffs including special offers for limited amounts of time. This made it difficult for people to find and compare tariffs across all energy suppliers in a quick and transparent way. The Government has worked with Ofgem to reduce the number of tariffs that energy suppliers can now offer - up to a maximum of four tariffs for gas and four tariffs for electricity per meter type.
2. Personalised, consistent and up to date tariffs
Previously, there was an issue with consumers on poor value “dead” tariffs i.e. evergreen tariffs (tariffs with no end date) that are no longer available on the market to new consumers. The Government has worked with Ofgem to make sure energy suppliers:
- move consumers off “dead” tariffs
- give all their customers personalised information on the cheapest tariff that they can offer them
- provide customers with a personal quote before they sign up to a tariff, so they will know how much they can expect to pay over the coming year;
- use a common format to describe tariffs ( the tariff information label) which helps consumers compare directly one tariff with another.
3. Support services
The Government has also invested in support services to help people switch energy tariff/supplier. We fund the Energy Saving Advice Service (phoneline), which provides information about switching energy tariffs/suppliers; we also fund the Big Energy Saving Network, which supports local community groups to help vulnerable consumers on energy issues. In its first year of operation, the Network helped thousands of people to switch - many of whom could not have managed this process by themselves.
4. Switching times halved
Previously, it took around five weeks for consumers to switch from one supplier to another. The Government working with Ofgem and the industry has halved switching times to 17 days to make sure that consumers can get their new deal as quickly as possible.
Taken together, this means there is a now a simpler market for consumers to navigate and more support services available for those who need help.