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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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Government sets out plans for cheaper power plans

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 This will ensure that no customers are left behind on poor value, out of date tariffs

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