Ofgem regulations on cutting energy bills fail

Newly announced Ofgem rules intending to reduce energy bills have backfired and now may leave some SSE customers at a disadvantage as the supplier plans to get rid of its cheaper tariffs.

Regulations forced by Ofgem’s Retail Market Review are limiting energy suppliers to offering four varying tariffs and were meant to cut down on bills by imposing suppliers to put their customers on their cheapest rates.

It has now been revealed that the electricity supplier Scottish and Southern Energy has told its 175,000 domestic customers that they will be moved to a new tariff in order to follow the new rules implemented. It is known that one of SSE’s retail brands Atlantic, has moved customers to tariffs that are up to £100 more expensive.

SSE announced that “the impact of all the forthcoming regulatory change will affect customers differently, some will be better off and unfortunately others will be worse off.” Fundamentally some consumers will see their average electricity bills and average gas bills soar.

The Labour party have evidently hit back with a statement with concerns that many energy suppliers will abandon their cheaper tariffs and consumers will not save money. Caroline Flint the shadow energy secretary has publicised her view on the matter with respect to David Cameron, “this is yet more evidence that David Cameron’s cack-handed reforms to energy tariffs have completely backfired.”

A spokesperson from the Department of Energy and Climate Change exclaims how these modifications will eventually lead to a more reasonable and efficient energy market. It will allow consumers to have a better understanding of the tariffs and provide clearer information for when consumers compare and switch.

Sourced – Energlivenews