Scrapping complex tariffs needed to cut household bills - Howarth

12.00.00am BST (GMT +0100) Wed 11th Apr 2007

Many households switching gas and electricity suppliers actually lose money, a report published today [Wednesday] shows.

The Liberal Democrats have welcomed the study as evidence of the need to reform complex pricing tariffs.

When switching suppliers, up to a third of consumers choose new deals that are more expensive than their previous deals because they are unable to work out the effects of their choice.

Commenting, Liberal Democrat Energy Spokesperson, David Howarth MP said:

"Gas and electricity companies are taking advantage of their customers' inability to understand complex tariffs.

"The industry regulator needs to step in to ensure that consumers are given clear information and that suppliers do not engage in confusing price tariffs.

"Households already struggling with increasing levels of domestic debt and rising mortgage payments should not have to deal with the extra headache of trying to understand complex pricing systems.

"Ofgem has been too complacent about the confusing nature of energy bills in the past. This report shows that the market is failing consumers and it is time for the regulator to stop failing as well."

ENDS

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