EDF Energy's response to Retail Market Review consultation launched by Ofgem
Martin Lawrence, EDF Energy Managing Director (Energy Sourcing and Customer Supply) said:
“We share Ofgem’s objective of simpler tariffs and we will study carefully Ofgem’s RMR Domestic Consultation Document. We look forward to working constructively with Ofgem on developing these proposals.
“We said in September we are committed to building trust, and we will work together with Ofgem and others to ensure it is done.
“Over the course of this year we have taken our own actions to simplify tariffs and improve trust.
- In March, we simplified our tariff structure to have a simple standing charge and a single unit rate for all electricity consumed
- In October, we cut complexity by reducing the number of tariffs we offer, in line with Ofgem’s proposals for simplification. All of our tariffs are available though all channels.
- In November, we introduced the last and lowest price change of all the main suppliers after deciding to share with customers the benefits of our strong nuclear generation performance this year. As a result, for the second winter running we have the lowest average standard dual fuel prices of the main suppliers.
“We will review the details of the consultation documents and respond further in due course, while also continuing to implement changes to benefit customers.
“We also look forward to reviewing the detail of Ofgem’s consumer research, which will be interesting alongside all the many pieces of research we have conducted with consumers over the years.”
Steps taken by EDF Energy in relation to today’s proposals by Ofgem
- In March EDF Energy simplified its tariff structure to have a simple standing charge and single unit rate for all our tariffs.
- In October EDF Energy reduced the number of tariffs it offers. All of its tariffs are available though all channels.
- In November EDF Energy introduced the last and lowest price change of all the main suppliers. As a result EDF Energy has the cheapest average standard dual fuel and electricity only prices of all the major suppliers.
- We also proposed the adoption of a universal ‘energy label’, similar to the nutrition label used in energy packaging, which would allow customers easily to compare tariffs between suppliers. We are keen to work with the other suppliers to develop and implement this.
- We are currently working to develop a simpler, more easily understandable bill.
- We have said that all products should be described using common, clear language, to make it easier for customers to compare tariffs.
- We recommended that time limited products should be limited to fixed and tracker price deals, to aid simplicity.
- To help encourage more people to switch onto the right tariff for them, we have proposed that the ‘Annual Statement’ which is issued by energy suppliers to customers, should be turned into a ‘call to action’. By labelling it an ‘Annual Review and Renewal reminder’ we believe it would encourage more customers to check that they are on the best available tariff.
- We’ve proposed that Ofgem runs a central switching service, funded by all the energy companies. It would be independent, and offer switching advice via the phone, online and post, and could help break down some of the current barriers to switching.