Ministers force ‘Big Six’ energy companies to reveal their cheapest and most expensive tariff deals
In a huge victory for The Sun, Energy Secretary Greg Clark said naming and shaming suppliers was just the “first step” in handing power back to customers
From today, regulator Ofgem will publish an energy suppliers’ standard variable rate (SVT) – typically the most expensive – and their cheapest deal.
The ten cheapest deals in the industry will also be listed.
And for the first time Ofgem will publish the proportion of customers at each of the Big Six who are still on an SVT.
Ministers are already considering new powers to force the Big Six to switch those on an SVT for more than five years onto a better deal.
Speaking last night Mr Clark told the Sun: “People will now be able to see how their deal compares to the cheapest tariff on the market.
“It’s vital that the energy market works for everyone and we want to make sure all consumers are equipped with the knowledge to make an informed choice about where they purchase their energy.”
The move comes just one month after the Sun revealed the greedy Big Six are making profits seven times bigger than they claim – with the most expensive tariffs £389 more expensive than the cheapest.
A report produced by industry lobby group Energy UK showed the margin on SVT’s was as much as 24 per cent. The fat-cat firms told competition watchdogs that profit margins were just 3.3 per cent.
At Tory party conference, Mr Clark vowed to shake-up the energy market as he launched a scathing attack on the Big Six for milking loyal customers who fail to seek out cheaper deals with rivals. The Government has been considering price controls and caps to help vulnerable customers.
As part of the crackdown, the Minister will explore ways of forcing the Big Six to easier access to details about how much gas and electricity they are using – so they can switch more quickly.
Citizens Advice chief Gillian Guy welcomed the Government plans. Referring to the publication of pricing, she said: “This league table will the lid on the price difference between standard tariffs and cheaper deals, helping those customers who are currently paying over the odds for their gas and electricity identify a better rate.
“We’d also like to see energy companies do more off their own back to help customers who are on a low income, like moving to a cheaper deal.”
