Ofgem proposes extra help for vulnerable customers.
Energy regulator Ofgem today published proposals* for a safeguard tariff for vulnerable customers “to protect them from overpaying for their energy”.
It had been expected that the government would tell Ofgem to cap prices for all customers. The growing call for such a cap followed the Competition and Markets Authority’s report in 2016 that customers were overcharged by £1.4bn.
In the event government and regulator are again leaving it to the market to solve the problem.
Ofgem knows most people – not just vulnerable customers – on the highest (standard variable) tariffs don’t ever switch suppliers. It plans to help however. For those it says are “more able to engage in the energy market” it will act “to take the hassle out of switching”.
Citizens Advice welcomed the extra support for low-income families but said suppliers must do more for all loyal customers.
“We’d like suppliers to have annual targets for getting their customers off standard variable tariffs, and a deadline after which any who haven’t switched for 3 years would also have their bills capped.”
*Ofgem announces plans to deliver a fairer, more competitive market for all consumers
Citizens Advice response to Ofgem’s proposed safeguard tariff