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| Ofgem announces 'radical' review of energy prices | Ofgem announces 'radical' review of energy prices |
| (40 minutes later) | |
| Regulator Ofgem has told energy firms they must offer simpler tariffs to help consumers compare prices. | Regulator Ofgem has told energy firms they must offer simpler tariffs to help consumers compare prices. |
| The "big six" suppliers should also face more competition, it said. | The "big six" suppliers should also face more competition, it said. |
| Ofgem said it would force these firms to auction off up to a fifth of the electricity they generate, making room for new companies. | Ofgem said it would force these firms to auction off up to a fifth of the electricity they generate, making room for new companies. |
| Energy firms could be referred to the Competition Commission if they do not comply with the new system, Ofgem said. | Energy firms could be referred to the Competition Commission if they do not comply with the new system, Ofgem said. |
| The regulator said that customers were "bamboozled" by a complex system of tariffs, which have increased from 180 to more than 300 since 2008. | |
| Competition in the UK energy market is being stifled through complicated tariffs and a lack of transparency, and energy firms "failed to play it straight with consumers", it said. | |
| Ofgem launched a review of the energy market after claims were made that suppliers were making excessive profits. | Ofgem launched a review of the energy market after claims were made that suppliers were making excessive profits. |
| Earlier in the year, British Gas said operating profits had risen by 24% in 2010 to £742m. | Earlier in the year, British Gas said operating profits had risen by 24% in 2010 to £742m. |
| In November, Ofgem said that energy supplier's net profit margin per typical customer rose from £65 in September to £90 in November, a 38% rise. | In November, Ofgem said that energy supplier's net profit margin per typical customer rose from £65 in September to £90 in November, a 38% rise. |
| Consumer confidence | |
| Ofgem said it also found evidence that the "big six" energy firms "have adjusted prices in response to rising costs more quickly than they reduced them when costs fell". | |
| "Consumers must have confidence that energy companies are playing fair at a time when they are being asked to foot the £200bn bill to pay for the investment Britain needs to ensure secure and sustainable energy supplies," said chief executive Alistair Buchanan in a statement. | |
| One supplier, Scottish Power, will face an investigation into its pricing regime, Ofgem said. | One supplier, Scottish Power, will face an investigation into its pricing regime, Ofgem said. |
| Do you think simpler energy tariffs would make it easier for you to compare prices and get the best deal? Send us your comments and experiences using the form below. |