The Government announced proposals to require energy firms to provide just four tariffs for each fuel and to place all customers on the cheaper deals.
But critics have warned that the plans could see an end to cheap deals, stop consumers switching suppliers, reduce competition and push up bills in the long run.
The FPAG has said that there must be a "major step change" in the energy efficiency of housing, which could be achieved through the use of carbon tax revenues.
Over the next 15 years the Government will collect an average of #4 billion per year in carbon taxes.
Using a proportion of that revenue to fund a much more ambitious energy efficiency programme could start to tackle fuel poverty.
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