Prime Minister David Cameron has already announced plans to make energy companies place consumers on the cheapest tariff available to them. Today, the Government will announce how it intends to do that.
While the plan has been met with criticism by some business groups - who say it could damage competition within the energy sector - it seems the Government is going ahead with its plan, according to the BBC.
Finding the cheapest tariff can be difficult with such a wide (and often confusing) choice available. So Energy Secretary Ed Davey will today announce that energy companies will be told to reduce the number of available tariffs to four each, for gas and electricity.
They're expected to be:
- A fixed price for a fixed term
- A standard variable rate
- Two more based on other criteria, like the payment method, or whether renewable energy is used.
Companies 'would be forced to switch customers automatically to the lowest suitable tariff unless they objected', reports the BBC.
A spokesperson for thinkmoney commented: "People may welcome the simplicity, but what really counts is the overall impact on their energy bills.
"Most people buy their gas and electricity from one of the 'big six' energy providers. We recently wrote about the new price rises announced by the big six energy companies, some of which are already in place.
"If you are with EDF Energy, Scottish Power, British Gas, Npower, Southern Electric or E.ON, click here to find out what those increases mean for your energy bill."