Cookie policy
Follow this topicFollow this topic Knowledge » Gas and electricity

Energy companies to tell customers about best tariffs

Simon Ward
by Lovemoney Staff Simon Ward on 11 April 2012  |  Comments 7 comments

The 'Big Six' have agreed to send their customers an annual letter telling them if they are on the best tariff or not.

Energy companies to tell customers about best tariffs

The Government has announced that it has reached an agreement with the ‘Big Six’ energy companies that they will send customers an annual letter advising them of their best energy tariff, if they're not on it already.

The letter will also be sent when a customer reaches the end of a contract. Vulnerable households, who are assisted by the Warm Front programme, will be sent two letters a year.

The ‘Big Six’ are British Gas, EDF, E.ON, npower, SSE and Scottish Power. They provide some or all energy to 99% of the UK’s customers.

Government figures show that seven out of 10 people are currently not on the best tariff for them. It’s estimated that the average household is spending £100 a year more on energy than it needs to.

There are currently a mind-boggling 120 different energy tariffs to choose from. As part of these measures, all the companies have agreed to simplify their tariffs.

However, energy price comparison Energyhelpline estimates that households could save up to £300 by switching to a different supplier.

Barcodes on energy bills

The Big Six companies will also investigate putting barcodes on bills. These barcodes, when scanned by a smartphone, will take a customer through to an online site to find quotes and compare tariffs.

And there will be funding for a second Big Energy Week to help people with their energy bills following a successful first event in January.

The companies have also agreed to commit to collective switching, where groups of customers club together to get the best deal. However, British Gas recently withdrew from Which’s Big Switch collective switching programme.

Compare gas and electricity prices here on lovemoney

More on energy bills:
EDF tops energy complaint tables again

EDF announces price promise and help for vulnerable

You’re subsidising your neighbour’s energy bills!

How to get free cavity wall and loft insulation

The Big Switch from Which?

Gas and electricity price 'reductions' are phoney!

Enjoyed this? Show it some love

Twitter
General

Comments (7)

  • Farab
    Love rating 24
    Farab said

    The only thing that's going to happen now is they will be putting up the prices of their 'cheapest' deals since more people will be switching to it. Sorry to say, but the only reason some of us have had low prices is because the others have had high prices.

    Report on 11 April 2012  |  Love thisLove  4 loves
  • pennywatcher
    Love rating 3
    pennywatcher said

    I agree Farab. Exactly what I thought as I read this piece....

    Report on 11 April 2012  |  Love thisLove  1 love
  • coloratura
    Love rating 61
    coloratura said

    Most of the cheaper deals have catches i.e. a new contract that locks in the buyer or having to pay by debit card when you don't want to. This is just a paper exercise for the Government/Energy Companies to appear to be fair to the consummer (in a pigs eye !!!)

    Report on 11 April 2012  |  Love thisLove  2 loves
  • OorWullie
    Love rating 38
    OorWullie said

    Surely the responsibility to search for the cheapest tariff is that of the consumer? What those leading companies will do is to operate as a cartel (officially or unofficially) when consumers will fail to benefit. There are areas where government should not interfere as it creates more problems than it resolves.

    Report on 11 April 2012  |  Love thisLove  1 love
  • easygoing
    Love rating 156
    easygoing said

    I think OorWullie is missing the point. Energy companies have been found to be not telling the truth about which tariff is the cheapest for a consumer and websites have been notoriously obscure. So I am not quite sure how the consumer can find the cheapest tariff for themselves if the companies hide them away. Somewhere in my life the business morals have changed such that they use every conceivable device to con as much money out of the consumer by lying, obscuring and sharp practice. Privatisation of our energy has just opened this mire of crooked dealings. Once the profit motive has been added to the mix morals go out of the window. It doesn't have to be like this.

    Any company that is accused of dealing fairly with the public is in danger of getting my custom.

    Report on 11 April 2012  |  Love thisLove  0 loves
  • Offa
    Love rating 40
    Offa said

    Just a cosmetic job to try and show Clegg is not as useless as he really is. The Libdems would have you go to bed at dusk and get up at dawn. No electricty- unless solar of course or wind generated - so you may as well go to bed as teh TV would be off most of the time.

    Privatisation was a blank cheque for capitalists and they will keep using it. The cheapest tariff will be so complicated and have such a long contract term that no-one will want it.

    You cannot make people look for the lowest price evemn they do not want to, just as you cannot make people buy the most fuel efficient car if they don't want to.

    Report on 11 April 2012  |  Love thisLove  1 love
  • Talent
    Love rating 77
    Talent said

    The twerp Cleggy said he hadn't changed energy suppliers for a couple of years! Why would he? We're told it would save 'up to' £100.... wow. Would Cleggy bother for such a pittance compared to his wealth?

    Report on 11 April 2012  |  Love thisLove  2 loves

Post a comment

Sign in or register to post a reply.

Related content

Our top deals

Provider & product Representative APR Amount & term Apply now

Derbyshire BS
Personal Loan

Representative 5.0% APR £10,000.00
60 months		 Apply
Representative example: assumed borrowing of £10,000.00 over 60 months at a fixed interest rate of 5.00% per annum would result in a representative rate of 5.0% APR (variable), monthly repayments of £188.20, total amount repayable is £11,292.00. Nationwide Building Society, Nationwide House, Pipers Way, Swindon, SN38 1NW. Derbyshire is part of the Nationwide Building Society Group..

Clydesdale Bank
Online Personal Loan

Representative 5.1% APR £10,000.00
60 months		 Apply
Representative example: assumed borrowing of £10,000.00 over 60 months at a fixed interest rate of 5.10% per annum would result in a representative rate of 5.1% APR (variable), monthly repayments of £188.64, total amount repayable is £11,318.40. Clydesdale Bank PLC, 30 St Vincent Place, Glasgow, G1 2HL.

Sainsbury's Bank
Shopper Standard Loan

Representative 5.1% APR £10,000.00
60 months		 Apply
Representative example: assumed borrowing of £10,000.00 over 60 months at a fixed interest rate of 5.10% per annum would result in a representative rate of 5.1% APR (variable), monthly repayments of £188.64, total amount repayable is £11,318.40.
W3C  Thank you for using CGWEBLIV3