Energy firms welcome Government’s cheaper tariff initiative

Energy companies and businesses have welcomed Government’s proposals to offer cheaper deals to consumers and help cut their bills. The initiative put forward by the Deputy Prime Minister today will […]

Register now!

By Priyanka Shrestha

Energy companies and businesses have welcomed Government’s proposals to offer cheaper deals to consumers and help cut their bills.

The initiative put forward by the Deputy Prime Minister today will enable consumers to contact energy companies and ask for the best tariff available. They will also be provided information on the best deals when their contract comes to an end.

Energy provider SSE says this new agreement will simplify the process for consumers and that Government and suppliers must work together for it. SSE’s CEO Ian Marchant said: “Suppliers, Government and Ofgem need to work together to improve the quality of information provided to customers and help ensure energy customers get the best possible deal.”

The CEO of Good Energy also welcomed the initiative but said the Government should look more to independent suppliers to ask how other firms “can learn from their best practice”.

Ann Robinson, Director of Consumer Policy at comparison site uSwitch.com believes the agreement is “the step change in thinking that we’ve all been waiting for”. She added: “Consumer switching levels have dropped off a cliff, but by suppliers actively demonstrating what the savings could be many more may be encouraged to shop around for a better deal. With the average household energy bill now an eye-watering £1,252 a year, consumers cannot afford to be paying more than they have to. The fact that seven in ten are paying over the odds simply demonstrates the deep malaise affecting the market.”

However, uSwitch also believes businesses may end up footing the bill. Ashton Berkhauer, Commercial Director of uSwitchforbusiness.com claims businesses should also benefit from this agreement as an “average business pays 70% more than it needs to for energy bills.”