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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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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

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