Consumer groups have welcomed British Gas’s promise to simplify tariffs for “confused, antagonised and alienated” customers who have been “bamboozled” by the energy market.
The supplier has axed two of its tariffs to bring the total down to five and has simplified the process of choosing the deal.
Customers will also get a complete breakdown of all the costs that make up their bills.
Although this in itself will not bring prices down, the move will make the market more “simple” and allow customers to shop around for the best deal, according to Consumer Focus director Adam Scorer.
“Energy is a simple product,” he said. “It should also be a simple market. Reducing the number and complexity of tariffs won’t bring prices down by itself, but it will help people understand their energy costs and get the best deal available.
“We hope these are real signs that the market is no longer in denial. It has bamboozled consumers for too long.”
Rather than being presented with seven different tariffs all at once, British Gas customers will now go through a three-step process, choosing whether they would like a variable or fixed tariff, online or paper bills and the option of how to pay.
Energy regulator Ofgem said it would analyse the British Gas changes to see how much they simplified the market for customers.
Ofgem’s partner for markets Ian Marlee said: “A key theme of our reform programme is that, in order to restore consumer trust, all suppliers must play it straight with consumers and we are pleased to see British Gas, SSE and E.ON responding to this by launching specific initiatives to improve transparency for customers.”
British Gas admitted it was facing a “crisis of trust” and would provide customers with information about green levies and company profits.
Managing director Phil Bentley said: “It’s time for change. It’s clear that the energy industry is facing a crisis of trust and we have all got to work much harder to rebuild public confidence.”
British Gas customers are being invited to contact Mr Bentley by e-mailing phillip. nbentley@britishgas.co.uk and suggesting improvements.