From April 2014, new rules to improve supplier communications, such as bills and annual summaries, will also come into effect to ensure consumers have the information they need to make informed and accurate comparisons.
In addition, at the end of March 2014 we will jointly complete an assessment of competition in the energy market with the Office of Fair Trading and the Competition and Markets Authority. We will report on the findings shortly after.
The Aims will be quite clear, to make energy tariffs
From April 2014…
We know that you can get a lot of information from suppliers about your gas and electricity, and that sometimes this can be baffling and unhelpful. We are introducing changes so that from April 2014:
You will be told regularly in writing which tariff is cheapest for you with your current supplier. These personalised savings messages will be included on your bill, Annual Statement and other communications.
You will receive more informative bills. They will contain key information about your tariff and how much energy you use. Having all this to hand will help you compare your own tariff with other options available.
Your Annual Statement will contain a range of useful information, in an easy to understand form. They will include key facts about your tariff, including discounts, your tariff end date, and whether any termination fees apply. They will also include useful information on how to switch suppliers if that’s what you want to do.
When suppliers notify you of price increases, they will have to spell out what that means in pounds and pence. This will make it easier to understand the impact the change will have on you.
You will also receive a number of new tools to help you compare tariffs which will be included on bills, Annual Statements, and other communications:
The Tariff Comparison Rate (TCR) will allow you to quickly and approximately compare tariffs across the market – like the annual percentage rate (APR) for credit cards, for instance.
Personal Projections will give you an accurate picture of your costs for the next 12 months, which will help you to make accurate, personalised comparisons.
In addition, suppliers will have to produce a Tariff Information Label for each of their tariffs. The label will contain a number of key facts about the tariff, including payment method, discounts, termination fees, and an estimate of the annual cost of the tariff for a typical consumer.
The information will be provided in a straightforward and standardised way. You will be able to access the labels online, and suppliers will also be required to provide them to you on request, free of charge.
To find out how you can now choose suppliers, simply watch the video below