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EDF backs single unit price proposals for gas and electricity

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EDF Energy announced it would give its backing to proposals by consumer group Which? that would help energy customers find the best deal, by removing complex tariffs and replacing them with a single unit price.

EDF – the first of the ‘big six’ suppliers to adhere to the campaign – has pledged to implement the proposal to help consumers identify the cheapest deal if its competitors followed suit.

In this scenario, people would only need the unit price to compare between different electricity and gas suppliers; making it easy to recognise the tariff that will save them the most money.

Martin Lawrence, managing director of EDF, said, “We know many consumers are confused when it comes to identifying which tariff is the cheapest for them – which is why we back these plans to simplify the market.

“By introducing a single unit price for electricity and gas, consumers would be left in no doubt as to which suppliers were offering the best deals. There would be no hiding place.” 

He added, “The question is will other suppliers be brave enough to back this proposal and remove tariff complexity once and for all for consumers?”

Commenting on the decision, energy minister Greg Barker said, “We believe that single unit pricing could have merit and the Coalition is actively considering this approach as part of our energy tariff reforms”.

But, he added, there might be ‘unintended’ consequences to the proposal.

We are particularly concerned about the impact on vulnerable high energy users including pensioners, the disabled, and those with young children”, he said.

“We need to make sure that we fully understand the potential impacts before making a decision on whether to move in this direction.”

 Further reading:

Ofgem calls for level playing fields in energy markets

SSE fined £10.5m by regulators for mis-selling

Ofgem: increased energy imports could raise bills

The Guide to Limitless Clean Energy

 

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