Energy Companies Must Be More Open About Tariffs
Many energy companies sell their power with various different names through satellite companies. These companies often offer a variety of different tariffs at a range of different prices.
Ofgem has told companies that do this that they must be more explicit about which rate that they offer is the cheapest. This means that customers will be better placed to make an informed decision about what tariff they sign up to.
This new action from Ofgem is aimed at "regaining the trust" of customers.
The process of selling energy to other companies that then sell it to consumers is known as white labelling and there are several energy firms that do this in the UK.
Some the companies that will be affected by this change are British Gas and Sainsbury's Energy and SSE with M&S Energy.
"It is important that consumers are given the complete picture about all their supplier's tariffs," senior partner at Ofgem, Rachel Fletcher, said.
"We are acting to reduce barriers to white labels entering the market and to ensure suppliers tell their customers what the cheapest deal is for them, whatever brand it is marketed under."
"Transparency about the cheapest tariff that a supplier offers is important in rebuilding consumer trust in the market."
Save money on your energy bills by comparing Energy Prices with MoneyExpert.com and earn up to £25 cashback if you switch your gas and electricity suppliers.