With energy prices on the rise for households and energy being such a complex and confusing subject, is it about time that unnecessary charges were eliminated?
Which? are calling for standing charges to be scrapped and the simplification of energy tariff should be put in place. Some energy companies have already removed them and instead introduced a two-tier pricing, but other companies still use the confusing multiple charges.
"Complex tariffs will be banned and all tariffs will have the simple structure of a standing charge and unit rate.??
With over 109 different tariffs and 75 different standing charges, its no wonder consumers are confused! This makes it harder to compare and contrast tariffs, creating more unrest and worry as prices continue to escalate. So this is where, rather than having a standing charge and a unit rate, there will solely be a fixed rate for both.
Under Ofgem's reforms, Energy Secretary Ed Davey stated: "Complex tariffs will be banned and all tariffs will have the simple structure of a standing charge and unit rate.?? Backed by the Government, Ofgem is forcing energy companies to limit their tariffs to a maximine of four and end some of their more complex deals.
'The new pricing will give consumers more control, confidence and clarity.'
So by making these changes will hopefully create more transparency as consumer already have lost a lot of trust in energy suppliers. The new pricing will give consumers more control, confidence and clarity in the amount they are paying and whether they can get cheaper elsewhere.