Business group the Institute of Directors (IoD) has called on the next government to force energy companies to create a new transparent default energy tariff that shows customers the different costs and profit margin that make up their bill.

The IoD said that if energy regulator Ofgem was tasked with overseeing the creation of a new default tariff, consumers would be able to judge different companies on an equal, transparent footing. The IoD’s report also called for the government to organise large auctions when looking for nuclear suppliers, thus encouraging a UK-based nuclear supply chain that comes with scale; to develop shale resources. Other objectives were to increase the use of auctions for renewable tariffs, as locking in fixed subsidies for years to come through feed-in-tariffs is “very expensive”; and to review the smart meter programme, to assess where savings could be made.

The report said the smart rollout was behind schedule, over-budget and “wedded” to out of date technology, the IoD warned that costs were likely to be pushed up and will only be added to SME and consumer bills.

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