To help people save money and make the industry more transparent, a new energy supplier league table has been launched that will show how many are on expensive standard variable tariffs.
Unveiled by Ofgem, the table will compare the average bill of someone on a standard variable tariff from bigger energy companies with the deals that are available from the ten cheapest suppliers, which will give people all the information they need in order to switch and save cash.
Chief executive of Citizens Advice Gillian Guy welcomed the move, saying that the lid will now be lifted on the price difference between expensive standard rates and the cheaper deals. She did call on energy companies to take the initiative more to help people on low incomes by moving them to cheaper deals, however.
Greg Clark, business and energy secretary, said: “Millions of people across Britain continue to pay too much for their energy. The measures announced today are a positive step to help more people benefit from increased choice and competition. As the government has made clear, where markets are not working for consumers – in energy or otherwise – we are prepared to act.”
Ofgem has also published a guide to help people understand what standard variable rate energy tariffs actually are. All suppliers have these and they are typically more expensive than other plans that are available. Approximately 20 million energy customers are on these standard variable tariffs and so potentially missing out on huge savings each year.
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