If you aren’t necessarily an energy expert, but take an interest in the industry and want to know how you can lower your usage and bills, then you may well have come across the Retail Market Review (RMR). Although this has been discussed in areas of the press and various energy comparison sites such as Love Energy Savings, you may be scratching your head as to exactly what the RMR is for and how it can help you. Our latest energy guide looks to explain just that and shed some light on what it actually means for your business and domestic energy bills.
We all know that both commercial and home energy prices have rocketed over the last few years and only the recent inquiry called for by Ofgem has even gone some way to reassuring customers that this will be curbed. One thing that the regulator had implemented, with varying degrees of success, was the Retail Market Review (RMR) as part of a number of measures to create a fairer energy marketplace.
The Retail Market Review Explained…
The RMR was unveiled by Ofgem back in 2010 as the regulator looked to establish simpler, clearer and fairer standards for what has been widely described as a broken energy market. They even cam out with an official statement regarding the Retail Market Review, which read as follows;
“We are making it easier for you to understand and choose the way you get your energy supply with simpler choices, clearer information and fairer treatment.”
How Does The Retail Market Review Affect My Bills?
The whole ethos of the RMR is to simplify an energy market which has been proven to be confusing and daunting for many customers, whether they are business or domestic consumers. It has been designed to allow customers to find the very best tariff for them and has obviously helped sites such as Love Energy Savings to compare energy prices and lower your monthly outgoings. The fallout out of the RMR was a couple of tools called the Tariff Comparison Rate (TCR) and Personal Projection.
Are Things Simpler?
This part of the RMR looked to simplify all of the business and home energy plans available in the UK. This was the point at which energy suppliers were no longer allowed to offer complicated, tiered energy contracts. You may have noticed that all of the energy packages you are offered are now simply structured with a clear unit rate and a standing charge. Restriction have also been put in place with regard to special offers and discounts, which can distort the overall picture you are painted when it comes to your ideal business or domestic energy tariff. The only two promotions you will see now are rewards for opting for dual-fuel and managing your account online.
What Exactly Is Clearer?
The information sent to energy customers was the primary purpose of the ‘clearer’ section of the Retail Market Review. Many home and business energy customers had raised concerns about the information present on their bills and how difficult it was for all of this to be deciphered. It was after this piece of legislature that all energy suppliers had to tell you what the cheapest tariff is which is currently available. This should be personalised and based on your household or place of work’s usage and needs.
More information is also available regarding your gas and electricity consumption figures, termination fees or anything else that can help you to make an informed decision about your energy. It is now a requirement that all of this valuable information is clearly stated in one place and not laid out in a way that is confusing or misleading for the customer. In addition to this, all energy suppliers are now obliged to communicate any price hikes in terms of pounds and pence.
Has The RMR Made Things Fairer?
This was perhaps the most crucial aspect of the Retail Market Review, as it looked to restore customer confidence in the “broken” energy market. Ultimately, this aspect of the RMR ensures that domestic and business energy suppliers inform you between 42 and 49 days before your plan is due to come to an end. This gives you the opportunity to get onto a better tariff or take advantage of energy comparison sites such as Love Energy Savings to find a better provider when it comes to your gas and electric. Other advantages include not having to inform suppliers of any intention to switch supplier to get the best energy rates and fixed rate deals not being increased by energy companies once the contract has started.
Why Not Compare Energy Prices Today?
If you found this energy guide useful, it is just one instalment of a wide range of resources we have available here at Love Energy Savings. As anyone who has used our service will be aware, we are an impartial energy comparison site and want to give you all the information you need to save as much money as possible when it comes to your business and home energy.
Why not see what other articles take your fancy and be sure to take advantage of a free energy comparison with us today.