Fair deal bid for energy customers

The measures include simplified price information on an at-a-glance score card to make switching providers easier, and an end to automatic contract renewal for small businesses.

Ofgem launched a consultation on the proposals which follow a probe into unfair pricing at the end of last year.

It said that, if energy companies cannot agree on the rules, then the issue will be taken to the Competition Commission.

The regulator's chief executive, Alistair Buchanan, said: "Our undue discrimination rule will address the symptoms of flaws in the market while our retail market measures will treat the causes. This is an emphatic move by Ofgem to clear the decks of obstacles that prevent consumers from getting access to the best offers.

"All consumers will be given greater power in the market and small businesses in particular will have a stronger hand to play in the market."

Under the proposed new rules, suppliers would be obliged to provide an annual statement including a reminder of the customer's right to switch energy providers.

Written quotations would be given after doorstep sales, with proof for pre-payment customers that offers made were better than their current deal.

Small businesses would be given clear contracts with no automatic rollover when the agreement ended. And there would be a new set of standards that all energy companies should meet to ensure they dealt fairly with customers.

These could include not selling people products that they do not understand or are inappropriate for their needs, and not changing anything about their service without explaining why. Customers could not be stopped from switching supplier without good reason, and would not be offered products that were overly complicated or confusing.