Panel asks Ofgem to ensure fair deal for customers

Panel asks Ofgem to ensure fair deal for customersA committee of MPs in the UK has asked regulator, Ofgem to take strict actions in order to make sure that the customers get a fair deal on electricity in the country.

The MPs pointed out that the six largest power suppliers took advantage of customer indifference and offered cheaper deals to lure new customers while charging more to existing customers. This made it difficult for the new suppliers in the industry to compete with the larger players. Ofgem and the government have asked the power suppliers in the UK to offer simpler tariff plans. The MPs have now said that more needs to be done to ensure that fair deals are offered to the customers by the power suppliers.

The report of the Energy and Climate Change Committee said, "We find it unsatisfactory that Ofgem should be so hesitant about launching preliminary investigations into potentially anti-competitive behavior. We understand that Ofgem plans to reduce barriers to competition... but we believe that a more proactive approach should be adopted."

Ofgem had released proposed reforms to the industry regulations that would now require energy suppliers to let customers know about the cheapest tariff offered. The regulator said that the consumers in the country are being confused due to the complex tariffs.

The regulator had said that the new regulations will make it easier for the consumers to understand tariff system. It said that the new proposed reforms will lead to 'simpler, clearer, fairer and more competitive' energy market.