Ed Davey, the Energy Secretary, unveiled plans for millions of Britons to be switched to the cheapest deals automatically as many consumers are losing out under the current system, which many say is too complicated.
People will be free to ‘’opt out’’ of the cheapest system so they are free to choose other tariffs such as, fixed price deals or environmentally friendly options.
Under the new plans energy companies will only be able to offer a maximum of four tariffs rather than the dozens that are currently on offer.
Consumer focus, the statutory campaign group have said that limiting tariffs would be good for customers.
In the past 3 years prices for gas and electricity has risen by an average of 19 per cent, while profits have risen almost 55 per cent.
Ed Davey, the Energy Secretary told MPs that the policy would build on proposals put forward by Ofgem to reduce the amount of tariffs on offer.
‘’Ofgem say their key proposal is to limit each supplier to four tariffs per fuel, per meter and per payment type,’’ he told the energy committee.
“That is the starting point for a new regime where there is still choice, still competition.”
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