Ofgem, the Office of the Gas and Electricity Markets, which protects consumers, has announced radical reforms to put an end to confusing tariffs set by energy companies.

In March this year Ofgem reported that "competition is being stifled by a combination of tariff complexity, poor supplier behaviour and lack of transparency and that radical change is needed". And now that radical change is slowly being implemented.

Astonishingly, there are currently more than 400 different tariffs available to consumers. Ofgem plans to change this by making each supplier offer just one standard tariff.

A standing charge will be set by Ofgem leaving suppliers only able to change the unit price. As Ofgem states: "All other complications like different tier prices and complex discount structures will be removed. So the lower the price the smaller the bill, with no exceptions."

The introduction of a clearer pricing plan is the first of four waves of reform; in November proposals of reforms to help the business sector will be revealed, followed in December by proposals to break the stranglehold of the "Big Six" energy companies, and then finally, in the New Year, the findings of an independent report into making energy company accounts more transparent will be made public.

Of course, you can act sooner than Ofgem if you prefer. Here are my four waves of reform; first, take a look at BigGreenSmile’s energy saving products.

Then, in, say, November, take a look at some of the other energy companies out there outside of the Big Six; companies offering green deals; or possibly consider providing your own energy by investing in Solar PV.

In December, have a break and enjoy the holidays. And in the New Year resolve to keep on saving energy, and, in the process, money.

[Image: yellow book]