The new rules set by Ofgem, the Government’s energy regulator, which are designed to simplify UK gas and electricity tariffs, come into force today. Essentially this means that each supplier is limited to a maximum of four “core” tariffs for each fuel (gas and electricity). There are some exceptions, including so-called “white label” tariffs (where energy is sold under the name of another organisations such as a supermarket or charity) and short-term offers for collective switching schemes.
Alongside the limit on the number of tariffs that can be offered, energy companies are no longer be able to offer unduly complex tariffs. In particular, they cannot sell tariffs where the unit price drops after an initial number of units have been used – instead any front loading must be clearly identified as a daily standing charge. It’s still possible to have a zero standing charge, but in this case all subsequent units of energy sold must cost the same. Companies are still able to offer different prices for Economy 7 (or similar) electricity supplied on off-peak tariffs, and to offer discounts for paying online or for buying both gas and electricity (dual fuel offers). Discounts for prompt payment are now outlawed. Ofgem have published a factsheet summarising the rule changes.
How does this affect certified green tariffs? As Ofgem were warned last year, most of the main suppliers have now withdrawn green tariffs as there were not enough customers on most of them to justify their being “core”. However many suppliers will periodically offer green tariffs on a rotating special offer tariff, and there should always be at least one certified green tariff available, offering certainty that the electricity sold is matched by renewable energy and has additional environmental benefits. So it’s still worthwhile checking out the current tariffs on offer in our decision tree.
