Back at the start of 2014, Ofgem introduced a number of energy tariff reforms to make it easier for customers to understand their tariffs and choose the most suitable deals.  More reforms were then introduced in April to make tariffs even clearer.

Ofgem’s changes included the rule that suppliers can only offer a maximum of eight tariffs per customer, and tariffs also had to become clearer by showing the unit rate and standing charge.  In addition, suppliers now have to inform customers of their cheapest tariffs as well as display a Tariff Comparison Rate (TCR).  Importantly, every tariff must also have a Tariff Information Label (TIL).

But what exactly are these TILs, and how can you use them to choose a more suitable tariff?

Simplifying Tariffs

A TIL provides you with all the information you need to know in a standard format, making it easier than ever to compare tariffs across energy suppliers.

TILs are specific to your property’s location, the type of fuel you are using, the payment method and more.  They include key details such as the costs for each unit, the standing charge and discounts.  By using a standard format, it is easier to understand and therefore easier to compare deals.

The Tariff War in Our Talking History by Ikhlasul Amal, on Flickr.  This work is licensed under a Creative Commons Attribution-NonCommercial 2.0 Generic License.

The Different Sections of a TIL

TILs are split into a number of sections that provide you with more information about the type of tariff so that you can easily compare it with other TILs, and this can help you when you choose an energy provider.

The first section will include the name of the tariff and the type of tariff it is, so this is fairly self-explanatory.  The second section displays the payment method (such as Direct Debit) and charges (the unit rate, which is how much you will pay for each unit, displayed in pence per kWh).  You may also see a standing charge, which is a fixed cost and includes the cost of reading the meter and maintenance.  This cost is displayed as the amount of pence per day that is charged.

The tariff terms shows when the tariff ends and when the price is guaranteed until, as well as any exit fees you may have to pay.  There is also a section on discounts and services that may be included on the tariff.

The estimated annual consumption of energy will also be displayed, as well as the estimated cost over the course of the year.  A Tariff Comparison Rate (TCR) will also be included, providing you with a simple way to compare the tariff with other ones.

Search for TILs

The best way to find an energy tariff that is suitable for your situation is to search TILs and compare them, and there are many ways to do this.

One of the simplest ways is to visit the energy suppliers’ websites and use their search tools.  For example, go to the npower website and you will be able to use the TIL lookup tool.  It is easy to use and you can instantly find TILs for electricity and gas so you can start comparing.

Compare Tariffs to Find the Best Deal for You

The new rules brought in by Ofgem have made it easier for customers to find the most suitable tariffs.  Now you can simply search for a suitable tariff by comparing the TILs.  It is easy to do, there is no more industry jargon to work through, and it provides you with the ability to make a more informed choice on which tariff is most suitable for your needs.

Charlie Heath is a consumer advocate and environmental researcher.  When he has the time, he likes to sit down and share what he has learned with others.  You can find his eye-opening articles on a variety of homeowner and eco blogs.