New Tariff Comparison Rates will help consumers to switch energy suppliers

Energy UKImproved customer information and simpler tariffs are helping people to switch to new utility suppliers, Energy UK said today after new figures from Electralink showed that 248,153 people switched their fuel supplier last month (February 2014).

And by 31 March, the following three new comparison tools will be introduced into the market to help consumer compare deals from competing suppliers; –

  1. The new Tariff Comparison Rate (TCR) – which is a bit like the APR for interest rates – will enable customers to compare tariff prices at a glance. The TCR is measured in pence per kilowatt hour (p/kWh) and based on a medium user.
  2.  The new Personal Projection will be used to estimate what customers will pay on a tariff based on their own usage or their supplier’s best estimate of it.  A Personal Projection will be based on consumers’ own bills. It will also be used for quotes.
  3.  A new Tariff Information Label will be produced for every tariff to allow customers to easily understand key facts about their tariff and compare it with others. The label will be on suppliers websites and annual summaries, and a short form on bills.

A spokeswoman for Energy UK said: “Around a quarter of a million customers shopped for a new energy deal in February with many considering smaller suppliers.

“It is easier than ever to switch with energy companies providing clearer information to make comparison and choice simpler. And there is plenty choice – with an increased number of smaller suppliers, as well as the more established suppliers – competing to provide deals to suit all customers.”

“Energy suppliers are committed to helping make energy deals simpler and more straightforward. They each only have four tariffs from which to choose and are providing more information to make it easier for customers to compare deals as well as working to make switching swifter.”

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