Are the new rules laid down in the energy regulator’s latest review really as tough as they seem?

The latest Ofgem review has lead them to announce various new measures designed to clean up the domestic and commercial energy markets.

The review was announced in November 2010, when it was deemed that the energy suppliers were making too much profit.

So far two major announcements have been made. In the commercial market, Ofgem told suppliers to simplify their confusing tariffs, while in the domestic market the review stated that 30 days notice should be given before prices are put up.

For a long time, Ofgem has been criticised for being a ‘toothless’ watchdog, so the weeks following this review should be an indication of just how much authority Ofgem has over the energy industry.

To many, the fact that they are only now exercising control over the number of tariffs suppliers are allowed to offer, and stopping suppliers hiking prices without telling their customers first may seem evidence enough of their indifference to suppliers’ actions in the past.

Ofgem says the review “should help potential supply market entrants”, breaking down the dominance of the ‘big six’.

Executives at the energy companies have already begun responding to this news, and we will be reporting on these in the coming days.