Unjustified price differences will be banned under new rules from Ofgem.

Energy regulator Ofgem has announced a set of proposals today (23 March) that will stop power suppliers from charging customers unjustified prices.

The new rules will allow consumers to yield more power over their energy supplies and should also provide some relief to vulnerable households and small businesses.

Ofgem aims to prohibit “unjustified price differences”, address issues in the retail market that have concerned customers over recent months, and improve financial transparency.

Suppliers will be required to provide an annual statement covering tariffs, displaying the customer’s consumption and reminding the consumer about the right to switch providers.

Information about tariffs will also be made simpler, allowing customers to compare energy deals more easily.

Ofgem 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 empathic move by Ofgem to clear the decks of obstacles that prevent consumers from getting access to best offers.”

Ofgem also revealed a measure aimed at cracking down on high pressure doorstop sales, which will now have to be followed up by written quotations. In addition, pre-payment meter customers will have to be provided with proof that the doorstop offer is better than their existing package.

If there is industry agreement, the new proposal will be implemented in time for the autumn.