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Ed Matthew, director of the Energy Bill Revolution (EBR), a group of businesses, trade unions and environmental campaign groups, said: "Simplifying tariffs and moving consumers to the cheapest is a no-brainer.
"But no-one should kid themselves this will bring down energy bills overall. The main benefit is really to make life less confusing for energy consumers.
"The danger is that it distracts attention from the only real, long term solution to high energy bills which is to make every UK home highly energy efficient.
"From next year, the Government will rake in over £2 billion in carbon tax, rising to £4 billion by 2020.
"If this was recycled back to households to make homes super insulated, it would be enough to end fuel poverty and in time slash the energy bill of every home in the UK."
Our Business Editor Laura Kuenssberg asked the Energy Secretary to explain why today's proposals differ from the Prime Minister's promise that every energy company would have to give the lowest tariff to their customers.
The Government says all customers should be placed on the cheapest tariff at the latest by Summer 2014. It will work alongside regulator Ofgem to finalise the proposals. Suppliers will be asked to provide clear information to help consumers switch.
The government will also set up a network of organisations to help vulnerable households get a better energy deal. It will also look at how consumers can benefit from technology to allow switching through smart phones.
The government has set out its own ideas to help consumers cut energy bills by being on the cheapest tariff. The main measures are:
- Limit suppliers to four core tariffs per fuel
- Require that the four core tariffs contain one standard variable rate tariff, and one fixed term fixed price tariff to ensure that these two tariffs, which account for 85% of all customers, are clear, simple and easily compared
- Allow suppliers freedom to offer the remaining two tariff types as they wish, to preserve customers choices, such as green tariffs
- Require that suppliers offer just a single price for each of the four tariff types
- Prohibit poor value 'dead' tariffs. This will ensure that no customers are left behind on poor value, out of date tariffs
Latest ITV News reports
It is possible that some of the best deals on the market will disappear. We could lurch from a minefield of deals to virtually none at all.
Downing Street sources are adamant tomorrow's energy bills announcement will stick to David Cameron's promise of lower tariffs, but will it?