Suppliers Must Tell Customers if Their Cheapest Deal Is Marketed Under a Different Brand

24th February 2015

Suppliers with white labels will have to inform customers of their cheapest tariff, whatever brand it is sold under
New rules provide greater flexibility for white labels brands to operate in the retail energy market
Ofgem has today set out final proposals for regulating suppliers who sell energy using white labels in the domestic energy market. From July, suppliers will have to be more transparent and tell customers what their cheapest tariff is regardless of the brand they use.

White labels are organisations that do not hold a supply licence, but instead work in partnership with a licensed supplier to offer gas and electricity using their own brands.

Under Ofgem regulations, suppliers already have to tell customers about their cheapest deal, but until now this rule hasn't extended to white label tariffs. Ofgem wants to ensure that suppliers are clear with their customers about their cheapest tariffs, regardless of the brand they use to offer the tariff.

Under Ofgem's final proposals, there are no limits to the number of white label partnerships suppliers can have. This will make it easier for new business models to enter the energy market while retaining the additional protection that Ofgem has put in place for consumers.

Rachel Fletcher, Ofgem senior partner, said: "Selling energy through white label brands has the potential to increase consumer choice and engage consumers to shop around through well-known brands. But it is important that consumers are given the complete picture about all their suppliers' tariffs. That is why we are acting to reduce barriers to white labels entering the market and to ensure suppliers have to tell consumers what their cheapest deal is, whatever brand it is marketed under."