EDF, one of the nation’s largest suppliers of energy to residential and commercial buildings, has called for a petrol-style pricing system for consumers. Energy tariffs are one of the few major expenses that are priced based on a regional model, with consumers paying a wide variety of rates for different types of energy usage.
One of the UK’s largest energy suppliers, EDF Energy, is calling for a far more simple method of pricing energy: a single-unit pricing method similar to the one many of us use to buy petrol. The large energy company, which employs over 20,000 people in the UK and abroad, believes new pricing would vastly improve the industry.
Consumers have long complained about confusing energy pricing, with the cost of a wide variety of different energy sources – gas, electricity, and the like – varying from one region to another. Consumers are also forced to contend with confusing pricing plans, which can obscure the true cost of the energy that they’re using.
EDF’s suggestion is an energy pricing system that’s vastly more simple: users simply pay based on the amount of energy that they’ve used, with no confusing usage plans or monthly fees. The proposed system has been praised by consumer groups, but an energy industry watchdog claims that it might be difficult for EDF to implement.
Ofgem’s concern is that the proposed system doesn’t take into account discounts for customers that use alternative payment methods, and that consumers will choose a pricing option that offers the best value, rather than pure simplicity. The group says that it shares EDF’s goal for simply energy pricing, but has concerns about its ideas.
With consumers frequently complaining of an overly confusing range of electricity and energy pricing options, the plan by EDF is certainly an interesting development – one that could lead to a more consumer-friendly energy sector.
