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

Latest ITV News reports

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.

Energy plan
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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Govt to publish plans to help lower energy bills tomorrow

by - Former Business Editor

Remember when the Prime Minister surprised everyone a couple of weeks ago by saying he would compel energy companies to put customers automatically on to the lowest tariff?

His ministers found it a bit tricky to explain how exactly that could work, in fact the energy department didn't even know he was going to make that announcement!

Well, I've just been told that tomorrow the Government is going ahead and publishing its plans.

They are unlikely to deliver exactly what the Prime Minister promised, but the Government will claim the proposals could cut bills for millions of households.

There will be more on my blog shortly.

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Energy committee chair 'concerned' about 'period of uncertainty'

The Chairman of the Energy and Climate Change Select Committee, Tim Yeo, has written to Energy Secretary Ed Davey, expressing concern that the Prime Minister’s surprise announcement on Wednesday could further delay the Energy Bill.

A screenshot of the letter sent from Tim Yeo to Ed Davey.

An excerpt reads:

"The Committee remains concerned about the negative impact any further delay will have on the timescale for implementing reforms and on investor confidence by prolonging the current period of uncertainty."

Number 10 'welcomes' Ofgem energy proposals

A Downing Street spokeswoman said they welcomed Ofgem's new proposals to force companies to tell customers about their cheaper tariffs:

We welcome the proposals that Ofgem have set out today. Their proposals will help make bills simpler and easier for consumers. This is complementary with what we are trying to achieve. It is really the same agenda. We have been working with them for some time on this and will continue to work with them. As the Prime Minister said, we will use forthcoming legislation to ensure that people get the lowest tariffs. The Energy Bill will be published in due course and we will take into account the Ofgem proposals.

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