Energy ‘price to beat’ deal to rescue rock-bottom trust
A CONSUMER watchdog has launched a campaign calling for “fair” energy prices after a poll found just one in five people trusted suppliers’ charging practices.
Which? has called for simpler tariffs alongside a “credible, independent benchmark” or a “price to beat” set by regulator Ofgem against which consumers could compare costs.
The watchdog said its latest poll revealed a “shocking” lack of trust in energy companies, with just 18 per cent of consumers trusting suppliers to charge a fair price for their energy and more than half (54 per cent) saying they found it difficult to compare the cost of different deals.
It also found that just 17% of consumers trusted energy companies to act in their customers’ best interest and just a quarter (26 per cent) rated their supplier as good at offering them a fair price.
Which? said energy prices consistently ranked as the primary financial concern for consumers, with four in 10 (41 per cent) worried about the cost of heating their home this winter.
A quarter (26 per cent) said they did not know whether they could afford to heat their home this winter, and just 24 per cent believed that competition between energy companies currently drove down prices f or consumers.
Which? has proposed that energy suppliers compete against the “price to beat”, which would be regularly updated by Ofgem, but said this would not be a return to full price regulation and could take a number of forms ranging from a reference price to a regulated tariff, adding that similar models already exist in parts of the US and Northern Ireland.
Which? executive director Richard Lloyd said: “Our research shows that the energy market remains at rock bottom for consumer trust.
“Millions of customers still don’t think they’re paying a fair price and most people f i nd it hard to compare deals.
“Big reforms are needed to restore confidence in the industry.’’