Energy suppliers should use petrol forecourt-style pricing to help consumers find the best deals, one of the UK’s biggest energy firms has said.
EDF Energy, which supplies 5.5 million homes and businesses, said that it would give single unit prices on gas and electricity if other firms agreed to do the same.
This would make it easier for consumers to compare prices between suppliers.
Energy prices are currently set regionally with some suppliers including a standing charge and a price for each unit of electricity and gas consumed.
Other suppliers operate a two tier pricing structure, where customers are charged a lower unit rate once a certain amount of energy has been used.
Energy watchdog Ofgem, which is overseeing reforms of the retail energy market, said that the single unit price option was not as “simple as it sounds”.
Ofgem’s retail markets and research partner Maxine Frerk said it did not take into account discounts for payment method, dual fuel and paperless billing.
She added: “Our extensive consumer research indicates that customers value these discounts, and our reforms seek to deliver simplicity while retaining the choice that consumers value.”
EDF Energy’s managing director Martin Lawrence said: “We know many consumers are confused when it comes to identifying which tariff is the cheapest for them – which is why we back these plans to simplify the market.
“By introducing a single unit price for electricity and gas, consumers would be left in no doubt as to which suppliers were offering the best deals. There would be no hiding place.”
Energy and Climate Change Minister Greg Barker said: “This Coalition is determined to do everything we can to help hard pressed families with the rising cost of living. That means going further than any government before in simplifying energy tariffs.
“We believe that single unit pricing could have merit and the Coalition is actively considering this approach as part of our energy tariff reforms.”
source:SKYNEWS
Tags: Energy Firms, Petrol-Style Pricing
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