Consumer groups have welcomed British Gas's promise to simplify tariffs for "confused, antagonised and alienated" customers who have been "bamboozled" by the energy market.
The supplier has axed two of its tariffs to bring the total down to five and has simplified the process of choosing the deal. Customers will also get a complete breakdown of all the costs that make up their bills.
Although in itself it will not bring prices down, the move will make the market more "simple" and allow customers to shop around for the best deal , according to Consumer Focus director Adam Scorer.
He said: "The penny has dropped. We welcome the news that energy companies recognise that the ways in which they have constructed and sold tariffs has confused, antagonised and alienated consumers.
"Energy is a simple product, it should also be a simple market. Reducing the number and complexity of tariffs won't bring prices down by itself, but it will help people understand their energy costs and get the best deal available.
"We hope these are real signs that the market is no longer in denial. It has bamboozled consumers for too long and it is high time it started being straight with them."
Rather than being presented with seven different tariffs all at once, British Gas customers will now go through a three-step process, choosing whether they would like a variable or fixed tariff, whether they would like online or paper bills and finally how they choose to pay.
Energy regulator Ofgem said it would analyse British Gas's changes to see how much they simplify the market for customers and stressed the need for a "decisive break with the past".
Ian Marlee, Ofgem's partner for markets, said: "We will be examining British Gas's proposals to see how far they meet our objectives to simplify tariffs, but we see a real advantage for consumers in a consistent, enforceable approach to reform and Ofgem is determined to deliver this."
