MPs tell energy suppliers to highlight cheap gas and electricity tariffs
Published on : 19/10/2012
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The Government plans to crack down on energy suppliers by forcing them to offer customers their cheapest gas and electricity tariffs.
Prime minister David Cameron has announced a new piece of legislation to make energy suppliers more transparent over their energy deals - after a number of suppliers revealed that prices will rise again.
Three of the big six energy suppliers - ScottishPower, British Gas and nPower - have informed customers that prices will increase during the coming winter months, whilst another - SSE - has implemented the rise it announced at the end of August (2012).
Of the remaining two suppliers, EDF Energy and E.ON - both of which are partaking in the Warm Home Discount Scheme - the former has yet to make an announcement and the latter has already pledged that its prices won't rise during the remainder of this year.
Responding to a question posed by Labour MP Chris Williamson at Prime Minister's Questions, Mr Cameron stated: "I can announce, which I am sure you will all welcome, that we will be legislating so that energy companies have to give the lowest tariff to their customers, something that Labour didn't do in 13 years."
It has also been indicated by Downing Street that the Government is considering a number of other potential options. These options include making suppliers write to their customers on an annual basis and putting them on the cheapest offered tariff.
These measures are expected to be included in the upcoming Energy Bill.
Executive director of Which?, Richard Lloyd, reacted positively to the announcement.
He commented: "Legislating so that energy companies have to give the lowest tariff to their customers is a big statement from the Prime Minister and acknowledges that competition in the energy retail market has failed.
"This is a big moment for consumers, but we must now see these words turned into action and see the detail from the Government in the Energy Bill."
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