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Money saving expert Martin Lewis has warned consumers not to expect "cheaper bills for all," when the Government announces plans to help millions of households today.
He told Daybreak: "What's likely to happen, if we have a reduced number of tariffs, is the people who never switch will pay less and those who regularly switch will pay more."
You've been telling us what you think about plans to reform the way customers are charged for electricity and gas. You can add your own comment on our Facebook page.
Vicki Brown I'm on an electric key and have storage heaters, in the winter I can pay up to £50 a week! I don't know the first thing about all these tariffs but I don't know the cost is killing me!!
Lisa Hudson Believe it when I see it,we have pay as you go meter...£80 so far this month!!!
Darren Duffy Here is an idea, if householders are going to be forced onto the cheapest tariff, then why is there more than one tariff? Why not eliminate all the other tariffs and just have one tariff that everyone is on?
The government wants to reduce the number of energy tariffs because it says the current system is too confusing and could lead to customers paying more than they need to. At the moment there are 500 tariffs available. Under the new proposals:
- Firms are expected to offer four tariffs for electricity and another four for gas
- But that may mean companies only offer one fixed-rate tariff
- Being the only tariff available of its type it would, by default, be the cheapest option
- A standard variable rate could also be offered
- And two other tariffs could be based on the way customers pay, or whether renewable energy is used
Energy Secretary Ed Davey is expected to announce plans today to help millions of households get lower energy bills. Daybreak's Jonathan Swain reports:
Energy Secretary Ed Davey is expected to announce plans today that will ensure all households are on the cheapest gas and electricity tariffs available.
It is thought Mr Davey will say that energy firms will be prevented from offering more than four tariffs and will be required to move customers on to the cheapest one.
The policy move comes amid concerns many households are paying hundreds of pounds a year more than they need to be for electricity and gas because of the confusing array of different tariffs.
Last month, the Prime Minister plunged energy policy into confusion by telling MPs that the Government would legislate so that gas and electricity companies "have to give the lowest tariff to their customers".
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?