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David Cameron: we'll force energy companies to offer lowest tariffs

Simon Ward
by Lovemoney Staff Simon Ward on 18 October 2012  |  Comments 20 comments

The Prime Minister says legislation will be introduced to ensure customers are offered companies' best deals, but ministers haven't provided any further detail.

David Cameron: we'll force energy companies to offer lowest tariffs

David Cameron has announced that energy companies will be forced to offer customers their lowest tariff.

The Prime Minister’s declaration follows a string of price rises from four of the ‘Big Six’ energy companies – SSE, British Gas, npower and Scottish Power.

In Parliament, Mr Cameron said that legislation would be introduced, as part of the forthcoming Energy Bill, to force companies to automatically offer their best deal.

However, the Department of Energy & Climate Change later appeared to backtrack, telling the BBC that “all options” were being looked at.

And some experts claim the plan would only limit competition among energy companies.

Ed Davey, the Secretary of State for Energy and Climate Change, avoided questions on the proposal during a question and answer session on the Energy Bill on Thursday morning.

And, following an urgent question from Labour in the House of Commons today, Energy Minister John Hayes didn't provide any more specific information. He said that the "fine detail" would be discussed with "energy companies, regulators and consumer groups".

Earlier this week, Which? wrote an open letter to the Prime Minister telling him "the energy market is broken".

The Energy Bill is due to be debated in Parliament in the coming weeks.

What do you think of the planned legislation? A good move or too little, too late? Let us know your thoughts in the Comments box below.

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Comments (20)

  • coloratura
    Love rating 61
    coloratura said

    British Gas have just offered me a lower energy rating. For giving them access to my bank account via direct debit and paying online they can offer me the princely sum of an 11p deduction on the total bill.

    If the Government really want to lower energy bills they could (1) Build coal fire power stations - the Germans are currently building 23 New ones (what agreement on clean energy ???? I hear you ask (2) Get gas from shaleing/cracking rock - which the Americans are doing at present and they have recently LOWERED their energy bills (3) Stop building wind farms which only provide something like 0.05 of our energy needs - but then perhaps one or two M.P.'s have a vested interest in these. There have already been reports to prepare us for the fact that in 3 to 4 years time we will be having blackouts from lack of electricity.

    Apparantly Sir Charles Frossard, the Baliff of Guernsey, has told the EEC that he will only accept legislation from Europe that Guernsey actually wants and agrees to - now that's the British spirit of old (make Sir Charles a Lord....sorry we will have to call you Lord Charles after the puppet which you definately are not - well done Sir Charles) - then we won't have stupid legislation that stops us from having the energy we need and we won't lose our sovereigty etc. Can I move to Guernsey please ? Oh and don't make the mistake of thinking that the Labour party will do much different from the Tory party. We need a complete change - the others have had a go and made a real mess of it - any chance we can vote in Sir Charles for Prime Minister of G.B.?

    Report on 22 October 2012  |  Love thisLove  0 loves
  • JOHN MAXWELL
    Love rating 56
    JOHN MAXWELL said

    i fully support the idea of the energy suppliers invoicing at the best tariff available based on energy actually used. on two occasions in the past 4 years i have used comparison sites to find i am with the right supplier but not on the right tariff. the only thing is it has to happen quickly as the energy suppliers will change their business pattern to bypass this.

    Report on 25 October 2012  |  Love thisLove  0 loves

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