Question
To ask the Secretary of State for Energy and Climate Change pursuant to his statement of 2 December 2013, Official Report, column 627, on energy bills, what assessment his Department has made of the effect of Ofgem's retail market review on consumer engagement in the energy market.
Answer
Ofgem's reforms under the Retail Market Review are creating a simpler, clearer and fairer energy market for consumers.
Since the end of August 2013, all suppliers have had to meet new standards of conduct set by Ofgem as part of the package of measures being introduced by the Retail Market Review. These require suppliers to treat all consumers fairly and in an honest, transparent and professional manner. They must also make sure that any information given to consumers is clear and easy to understand.
Ofgem's rules for fixed term tariffs were introduced in October. These rules ban suppliers from increasing prices on fixed-term tariffs. Suppliers are also banned from automatically rolling householders on to another fixed-term offer when their current one ends.
From 31 December 2013, Ofgem is banning suppliers from offering complex multi-tier tariffs, and limiting the number of tariffs suppliers may offer. Suppliers have taken steps to be compliant with these rules in advance of them coming into force.
The full package of measures being introduced by Ofgem will be in place by July 2014.