Ofgem to give more clout to consumers

Welcoming the announcement by energy industry regulator Ofgem that its probe is going to give more muscle to consumers, Ann Robinson, Director of Consumer Policy at uSwitch.com, says: "Ofgem is tackling market issues head on and giving more clout to consumers. The remedies it has laid out and is now driving forward are designed to ensure consumers are kept informed, protected and empowered to take part in the competitive market.

"The groundwork laid by Ofgem is solid, but now the real hard work begins. The regulator now has to ensure that suppliers are doing their bit to keep things simple, straightforward and easy for consumers to understand as well as adhering to the code of conduct that it has set out. We are also pleased that Ofgem is working towards increasing transparency in the market. There are clear benefits to be had from this. Firstly it will boost consumer participation, but secondly it will create greater trust and understanding between consumers and suppliers. This will make the fight to become more energy efficient and meet stretching carbon reduction targets easier - vital if we are to limit the impact of unprecedented future investment costs on household bills.

"However, if we are to know that Ofgem's push to bring consumers into the market is working there needs to be a simple acid test. At the moment, despite the fact that online plans are consistently cheaper than standard energy plans, only around 5% or 1.3 million households are on them. Standard plan customers have seen price reductions of 4% or £54 this year while online customers have enjoyed 12% or £133. Despite this, take up is low. If Ofgem's measures are effective then we should see a big increase in the take-up of suppliers' most competitive plans - we would like Ofgem to set this as an aim and ongoing measure of success."