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
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?
Ministers are poised to announce plans to decrease energy bills in a bid to get customers on the lowest tariffs available.