Chief Executive of Ofgem, Alistair Buchanan, has recently announced that he is determined to put an end to bad practices in the UK energy industry. Energy companies will be prohibited from charging "unwarranted" costs under new decrees suggested by the regulator Ofgem.

Costs for dissimilar payment techniques, such as pre-payment meters, will have to contemplate prices to the provider.

Ofgem commenced the probe into the state of matters of the energy marketplace in the United Kingdom in February 2008. An industry body has received the most recent move, laying claim that £300 million has already been cut down from pre-payment and electricity-only duties.

In its first determinations in October, Ofgem pronounced that there was no evidence of collusion between the "big six" providers in adjusting costs and the marketplace was "acting upon well" for most consumers.

This is an assertive act by Ofgem to acquit the decks of obstructions that keep consumers from getting admittance to the better offers.

However, it aroused concerns over the difference in prices for those paying in different methods, and deals for those with no gas supply.

About 12% of families pay one fuel bill on a pre-payment meter, whilst this increments to 37% of those in social housing, it said.

Under the nominated rules:

·                      Different payment methods will have to reflect the cost to the supplier of offering those methods

·                      Energy companies must provide an annual statement to customers providing details such as the tariff, consumption and a reminder of the customer's right to switch

·                      An at-a-glance price scorecard on bills to make it easier for consumers to switch

·                      Small businesses to be given clear contracts with no automatic rollover when the agreement ended

The new circumstances would give Ofgem the power to fine companies that could not establish price differences were rationalized.