Energy suppliers will got to admit to their customers that they are giving higher deals through partner brands British Gas are forced to advise its 9m family customers that they would be better off switch to Sainsbury’s Energy, beneath plans from regulator Ofgem.
SSE will be forced to inform its 5m customers that they could get a cheaper deals with M&S Energy, beneath the proposals, expected to be published this week.
Both energy giants operate so-called “white label” arrangements with the retailers, whereby British Gas and compass point provide electricity and gas to customers beneath Sainsbury’s and M&S stigmatisation.
Under reforms designed to create the energy market less complicated and fairer, Ofgem introduced rules earlier this year forcing all suppliers to inform their customers regarding the most cost effective tariff they offer, and limiting every provider to four tariffs.
But it handed temporary exemptions to white label brands and their partner suppliers, so that they were only obliged to advertise the most cost effective tariff for his or her own whole, and could offer four tariffs every.
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