Ofgem criticises single unit energy pricing

[Michael Browne]

The energy regulator has branded a proposal by EDF to introduce single unit pricing for gas and electricity as "not as simple as it sounds".

 

Instead, Ofgem is to simplify the energy market in the forthcoming Energy Bill by requiring companies to limit the number of tariffs on offer to four for each of gas and electricity.

 

EDF Energy calls for 'petrol station forecourt' pricing

 

One of the UK's biggest energy suppliers has called for single-unit pricing for gas and electricity to help consumers compare tariffs as easily as they currently shop around for petrol.

 

EDF Energy said it would introduce the system if all other suppliers did too.

 

The energy regulator Ofgem said the proposed scheme would not be as easy to implement as it might appear.

 

This was because of the number of payment options and special "dual fuel" packages that currently existed.

 

A plan by Ofgem to simplify the energy market will be included in the forthcoming Energy Bill.

 

It will require companies to limit the number of tariffs on offer to four for each of gas and electricity.

 

But EDF said that plan was still too complicated.

http://www.bbc.co.uk/news/uk-22916656

Edited June 15, 2013 by Michael Browne

[Darfyddi]

Banning the different rates between units in a single contract and the different allowances of first or second rates between various contracts would be a good start.

 

I am excellent at maths but it still takes me days of reserch to try and estimate what my bills will be as finding out the amount of first expensive units that are allowed and then the amount of second units used is a nightmare and I still don't know if they are worked out on a daily, monthly or yearly basis. If all units were one price per contract and all standing charges were abolished then we might be able to work out our bills.