Energy regulator Ofgem has unveiled a package of new rules for energy suppliers that will give consumers more power and help to seal the flaws in the retail market identified in the regulator's market probe.

The proposed measures will make the market work better for all energy consumers including vulnerable households and small businesses.

The regulator is proposing an approach on two flanks: a prohibition of unjustified price differences to close off any recurrence of poor deals for customers in sectors of the market; and a set of remedies to address specific retail market issues.

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Ofgem Chief Executive, Alistair Buchanan, said: "Our undue discrimination rule will address the symptoms of flaws in the market while our retail market measures will treat the causes. This is an emphatic move by Ofgem to clear the decks of obstacles that prevent consumers from getting access to the best offers.

"All consumers will be given greater power in the market and small businesses in particular will have a stronger hand to play in the market."

Suppliers will be expected to deal fairly with customers. This will be spelt out at the head of the retail remedies package in a set of new, overarching standards of conduct that suppliers should meet. The standards will complement the licence conditions that will deliver the new retail remedies package and will remind suppliers of what customers should expect of them in all instances.

If there is no industry agreement on the package of proposals, Ofgem retains the option to take the matter to the Competition Commission.

(CD/JM)