Statutory consultation: Estimated annual costs for domestic consumers
- Closed (awaiting decision)
- Closed (with decision)
Ofgem’s objective is for consumers to be provided with projections of the costs of their electricity and gas tariffs that are both transparent and accurate. This will enable them to budget and to compare and switch tariffs with confidence.
The current methodology that suppliers and some price comparison sites are required to follow is prescriptive – it sets out in detail how they should factor in standing charges, unit rates, discounts and charges for bundled products.
We think that consumers will be better-served by enabling suppliers and comparison sites to tailor the cost estimates they provide.
This statutory consultation sets out our proposal to amend the estimated annual cost methodology so that it continues to provide strong protections for consumers while also being sufficiently flexible and future-proofed to reflect the tariffs that are on the market now and in future.