Energy bills simplified

The Energy Secretary has admitted the Government's plans for energy bills will not make them cheaper for everyone, but should make them simpler. Last month David Cameron vowed he would compel firms to put customers automatically on the lowest tariff

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Cheaper energy bills 'won't be for all'

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."

Removing choice 'could end cheap energy deals'

If that is what the Government wants, that is fine. What it will do is potentially remove some choice away from people and certainly some deals that people get at the moment. Certainly it is the case that if you have restrictions and constraints, then you can't offer everything and you can't offer the variety of choice that you get at the moment.

– Angela Knight, Energy UK chief executive, SPEAKING TO BBC RADIO 4

Your comments on plans for cheaper power plans

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?

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Plans for simpler energy tariffs may see bills fall

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

Davey set to announce cheaper energy plan

Energy Secretary Ed Davey is expected to announce plans today that will ensure all households are on the cheapest gas and electricity tariffs available.

Ed Davey, Secretary of State for Energy and Climate Change. Credit: Gareth Fuller/PA Wire

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".

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