Energy companies will be required to inform customers of their best tariff available which could save up to £100 per year for each household.
All energy suppliers will be required to inform people of the best deals available to them and then offer it to them should they request it.
Deputy Prime Minister Nick Clegg suggested that as much as seven in ten people fail to get the correct deal and end up paying more than they need to.
The majority of households in the UK have not had the chance to switch gas and electricity, because they simply haven’t even given it a thought, in fact many households haven’t switched in more than 2 years, we believe that the huge amount of tariffs and different packages energy suppliers offer leave people feeling confused and deflated.
From this autumn, energy suppliers might have to simplify tariff information and then tell consumers of their cheapest packages for them, this comes at good time since customers seen a rise of around 15%-18% in gas bills in the autumn, as well as a sharp rise in electricity, which has been blamed on a rise in the wholesale cost of energy.
You still need to do your research
The companies taking part in this new move are British Gas, E.On, Npower, Scottish and Southern Energy, EDF and Scottish power, these will have to inform their customers of the best deal each year.
The deal is only going to apply to tariff’s offered by the customers current supplier, so don’t be fooled into thinking that you no longer need to do your research, because you still need to “shop around” to get the cheapest deal with another energy provider.
Consumer focus group welcomed the idea and suggested that as customers start to come of their fixed term contracts instead of going back on a standard rate deal they can enjoy the best deal on offer, of course the people using price comparison websites have enjoyed this for a long time, and they will continue to be able to get the best deals from the whole range of energy suppliers available.
More still needed
This is a great step towards lower energy prices but for those who are witty and already did their research into the market, there is no real benefit here.
Britain needs to loosen its dependency on imported gas and start creating plans to support home-grown supplies, before any real price cuts are seen, and at the moment this seems a little optimistic because support for home grown energy deposits like nuclear power and fracking have very little support within the population.
The best way to save money on energy would be to compare the entire market to find the best tariffs by energy firms and to install energy saving measures like wall insulation, water efficient shower, low watt bulbs and to make sure everything is turned off at night.
How do you save money on your energy bill?
Have your bills been increased?
Please let us know in the comments below, we would love to hear from you.