This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at http://www.bbc.co.uk/news/business-36961798

The article has changed 9 times. There is an RSS feed of changes available.

Version 3 Version 4
Ofgem to introduce price cap for pre-pay energy meters Ofgem energy shake-up 'doesn't go far enough'
(35 minutes later)
Ofgem has said four million pre-pay energy customers will be protected by an interim price cap from next April. Ofgem's proposals to shake up the energy market put "too much onus" on the customer and "do not go far enough", says one energy company boss.
The cap will save "vulnerable" households using pre-pay energy meters about £75 a year, the regulator said. The energy regulator said four million pre-pay customers would be protected by an interim price cap from next April.
Ofgem said it would also work with suppliers to help "disengaged" customers on "expensive standard variable tariffs" to shop around more. It added it would work with suppliers to help "disengaged" customers to search for cheaper deals.
But one energy company boss said the proposals put too much onus on the customer and did not go far enough. But First Utility's managing director, Ed Kamm, told the BBC the plans were in danger of helping the wrong people.
The managing director of First Utility, Ed Kamm, said: "Ofgem itself admits that consumers who are already engaged in the market will see the first benefits. "Ofgem itself admits that consumers who are already engaged in the market will see the first benefits," he said.
"We are in real danger of continuing to fuel a 'tale of two markets' - helping those who already shop around and doing little to properly help those who are continuing to pay much more than they need to or should," he added."We are in real danger of continuing to fuel a 'tale of two markets' - helping those who already shop around and doing little to properly help those who are continuing to pay much more than they need to or should," he added.
However, Ofgem said the proposals were an "opportunity to deliver a more competitive, fairer energy market for all consumers". However, in its report published on Wednesday, Ofgem said the cap would save "vulnerable" households using pre-pay energy meters about £75 a year.
It also promised to co-operate with suppliers to help "disengaged" customers on "expensive standard variable tariffs" to shop around more.
It said the proposals were an "opportunity to deliver a more competitive, fairer energy market for all consumers".
It welcomed proposals published last month by the Competition and Markets Authority (CMA) aimed at reforming the energy market.It welcomed proposals published last month by the Competition and Markets Authority (CMA) aimed at reforming the energy market.
Ofgem chief executive Dermot Nolan said the CMA's final report was a watershed moment for both the industry and consumers and pointed the way to a "fairer and more competitive future".Ofgem chief executive Dermot Nolan said the CMA's final report was a watershed moment for both the industry and consumers and pointed the way to a "fairer and more competitive future".
"I call on energy companies and consumer groups to seize this opportunity," he said."I call on energy companies and consumer groups to seize this opportunity," he said.
'More effective''More effective'
According to the CMA's two-year investigation, two-thirds of UK households were paying "over the odds" for their energy compared with those who have switched to a different tariff.According to the CMA's two-year investigation, two-thirds of UK households were paying "over the odds" for their energy compared with those who have switched to a different tariff.
To encourage more switching, Ofgem planned to trial "more effective prompts" on customers' bills to encourage them to compare different tariffs.To encourage more switching, Ofgem planned to trial "more effective prompts" on customers' bills to encourage them to compare different tariffs.
However, Ofgem said it would not be capping standard variable energy tariffs.However, Ofgem said it would not be capping standard variable energy tariffs.
Mr Nolan told BBC Radio 4's Today programme the CMA had decided that capping standard tariffs was not in the best interests of customers.Mr Nolan told BBC Radio 4's Today programme the CMA had decided that capping standard tariffs was not in the best interests of customers.
Instead, the CMA had proposed "a series of remedies", said Mr Nolan, adding they would make the market fairer and encourage customers to switch energy suppliers.Instead, the CMA had proposed "a series of remedies", said Mr Nolan, adding they would make the market fairer and encourage customers to switch energy suppliers.
Ofgem believed encouraging competition was the best protection for consumers, he added, and said switching rates had increased over the last year.Ofgem believed encouraging competition was the best protection for consumers, he added, and said switching rates had increased over the last year.
Huge challengeHuge challenge
Consumer organisation Which? welcomed Ofgem's report.Consumer organisation Which? welcomed Ofgem's report.
"It's good to see Ofgem swiftly taking forward the CMA's recommendations to increase competition and reach people who are not engaged in the market," said Alex Neill, Which? director of policy and campaigns."It's good to see Ofgem swiftly taking forward the CMA's recommendations to increase competition and reach people who are not engaged in the market," said Alex Neill, Which? director of policy and campaigns.
"The regulator faces a huge challenge in implementing all of these recommendations in a way that stimulates competition to deliver better outcomes for many more consumers. For this to happen the industry will need to commit to working with the regulator to ensure people get a fairer deal on their energy," he added."The regulator faces a huge challenge in implementing all of these recommendations in a way that stimulates competition to deliver better outcomes for many more consumers. For this to happen the industry will need to commit to working with the regulator to ensure people get a fairer deal on their energy," he added.
One of the "Big Six" energy suppliers, EDF Energy, said it supported "the implementation of the CMA's proposed remedies without delay, so that customers can continue to benefit fully from competition and innovation".One of the "Big Six" energy suppliers, EDF Energy, said it supported "the implementation of the CMA's proposed remedies without delay, so that customers can continue to benefit fully from competition and innovation".
However, critics have said it is impractical for most people to check every few weeks whether they were getting the best possible deal.However, critics have said it is impractical for most people to check every few weeks whether they were getting the best possible deal.
"It can be difficult - people don't have the time to do these things, but unfortunately, that's the nature of a competitive market," the director of energy supply at industry body Energy UK, Audrey Gallagher, told the BBC."It can be difficult - people don't have the time to do these things, but unfortunately, that's the nature of a competitive market," the director of energy supply at industry body Energy UK, Audrey Gallagher, told the BBC.
"I think this industry is doing as much as it can to try and reassure consumers that they can switch. There's information about the cheapest deals available currently on every bill," she added."I think this industry is doing as much as it can to try and reassure consumers that they can switch. There's information about the cheapest deals available currently on every bill," she added.