Energy Prices: Companies Must Give Customers 'Best Deal' Nick Clegg Says

PA/The Huffington Post UK  |  Posted: 11/04/2012 08:34 Updated: 11/04/2012 12:41

Energy Prices Nick Clegg
Energy companies will write to customers every year telling them the best deal for their household in a move which could save millions £100 per year

Energy companies will write to customers every year telling them the best deal for their household in a move which could save millions of people up to £100 per year, Nick Clegg will announce today.

Customers could save cash by switching their tariff, but 70% of households pay more than they need because they are not on the best rate.

The deputy prime minister hopes a new agreement with Britain's six biggest energy firms will offer customers the most efficient deal, driving down gas and electricity bills.

In a speech, Clegg will say ministers "cannot control volatile world energy prices", but will claim the government can help people cut their bills.

He is expected to say: "We have secured a landmark deal with the six big energy companies who cover 99% of customers, to give customers a guaranteed offer of the best tariff for them.

"Right now, seven out of 10 customers are on the wrong tariff for their needs, so are paying too much.

"Yet people rarely switch, despite the fact some families could save up to £100 a year.

"There are currently over 120 different tariffs, making it very difficult to know where to start. That is going to change.

"As of this autumn, your supplier will have to contact you with the best tariff for your needs - and if you call them, they'll have to offer you the best deal too."

Energy­helpline.com's Mark Todd said: “There is pressure from all sides on people’s energy bills.

“It seems there is no let-up for the consumer. We’ve got raw material cost increases, green taxes for insulation and building wind farms. And now investment in infrastructure, which everyone says is falling to pieces.”

He is also expected to announce a new scheme where companies will print barcodes on bills, allowing customers to scan the code on their mobile phones, linking them to the best energy tariffs.

Clegg will also use his speech at KPMG in London's Canary Wharf to defend plans to "green" Britain's economy despite many households struggling with rising shopping and fuel prices.

"We are undergoing a profound transformation within our economy and for the first time ever our economic and environmental mantras are exactly the same: waste not, want not," the Liberal Democrat leader will say.

"Responsibility, sustainability are the watchwords of the day, and that creates a unique opportunity to put environmental thrift into the mainstream."

Jim Footner, head of Greenpeace's climate and energy campaign, said: "Tackling soaring energy bills will doubtless be good news to thousands of households who are struggling to make ends meet.

"So it's good to see Nick Clegg taking an interest in the plight of people who are feeling the pinch.

"But tinkering around the fringes of the overly gas-dependent energy sector simply won't be enough.

"If Clegg wants the Lib Dems to be seen as a green champion, and a friend of the bill-payer, then he's got to take on the Big Six energy companies by reforming the industry.

"He's got to make sure that we become far less reliant on expensive, imported gas while also backing cutting-edge, home-grown renewable energy."

Consumer Focus's director of energy Audrey Gallacher said alerting customers to the best deal was "long overdue".

But she added: "While any move to help energy customers to get the best deal is welcome, it has to be the right method to reach people and the benefit must outweigh the cost.

"This needs to be more than a one-off mail shot and part of a wider strategy to help people overcome the burden of having to navigate hundreds of complex tariffs to get a decent price.

"Unfortunately, people don't trust energy firms and previous mail-outs have not always had the best take-up."

Richard Lloyd, executive director of consumer group Which?, said: "Most people find it much too complicated to work out how much they should be paying for gas and electricity so these moves to make it easier to find a cheaper deal are an important step forward at a time when so many are struggling to pay their bills."

A spokesman for industry regulator Ofgem welcomed today's announcement, saying: "Our retail market review showed the energy market is too complex and that further action is needed to make sure the market works in the interests of consumers.

"Since we have published this analysis many suppliers have admitted they need to change their ways and some are beginning to try and address the problems Ofgem's review identified."

Shadow energy secretary Caroline Flint criticised the time taken for the coalition to tackle energy bills and accused the Government of being "completely clueless" in helping struggling households.

She said: "Our energy market needs a complete overhaul, but this Government is only fiddling at the margins.

"Labour will stand up for hard-pressed families and pensioners and end the rip-off.

"We will break the stranglehold of the big six energy companies by making them sell all of their energy into a pool, encouraging new entrants, increasing competition and driving down energy bills for families."

She said Labour, which was in power for 13 years from 1997 to 2010, would force energy firms to guarantee customers aged over 75 would automatically be offered the cheapest gas and electricity tariffs.

FOLLOW UK POLITICS

Energy companies will write to customers every year telling them the best deal for their household in a move which could save millions of people up to £100 per year, Nick Clegg will announce today. ...
Energy companies will write to customers every year telling them the best deal for their household in a move which could save millions of people up to £100 per year, Nick Clegg will announce today. ...
 
 
  • Comments
  • 14
  • Pending Comments
  • 0
  • View FAQ
Post Comment Preview Comment
To reply to a Comment: Click "Reply" at the bottom of the comment; after being approved your comment will appear directly underneath the comment you replied to.
View All
Favorites
Recency  | 
Popularity
04:02 PM on 04/11/2012
Cloggy's spouting about saving us up to £100.00p a year on our utility bills, within days of their knumbskul mate 'Osbeen' giving £40,000 tax breaks to their wealthy buddies, who he did'nt realise ( he said he was shocked) did not pay enough tax. Its election time for RIP-OF BRITAIN. more lies,lies,lies,lies,lies,and more lies.
lastpost
see biography
01:54 PM on 04/11/2012
"Companies Must Give Customers ‘Best Deal’ Nick Clegg Says"
Sound like a line from Camelot.
It's true! It's true! Nick Clegg has made it clear.
The climate must be perfect all the year.
The winter is forbidden till December
And Utilities beware they place the dot.

"save millions of people up to £100 per year"
Up to. Now where have we heard that meaningless claim before. Oh, Broadband speeds.

"ministers "cannot control volatile world energy prices"
Now that Muppets are in short supply for exploitation by traders. Isn’t it true that commodities and being targeted, to make up that shortfall? A superimposition of gatekeepers, between customs and supply.

"Right now, seven out of 10 customers are on the wrong tariff."
Aren’t tariffs just a smokescreen blowing across a minefield? Do customers change their lifestyles to fit around them?

"announce a new scheme where"
reality plays a bigger part in what’s actually going on. Rather than devising child’s games.

"So it's good to see Nick Clegg taking an interest in the plight of people who are feeling the pinch."
Especially those who had their grants pinched after believing in false promises.
01:47 PM on 04/11/2012
Another swindle by the Coalition. IF they were SERIOUS about getting the Customer the BEST DEAL, they would require EVERY AVAILABLE TARIFF for that household be put in simple English on one page for the customer to CHOOSE the best Tariff. As it is, this will NOT drop a single Tariff a single penny and just enough people will change tariffs within the same Companies for the Coalition to CLAIM that it was successful. Too LITTLE and NOT ENOUGH....another example of the Coalition and in particular the Liberal Democrats blowing smoke up the UK Consumers ar**.
01:21 PM on 04/11/2012
Its a headline grabing move to cover up the real problem, until this goverment have the welfare of the population at heart, and smash price fixing by energy companies the only people that are and will be better off are the directors and ceo's of these companies.
photo
casual agent
Advocate for social justice
01:17 PM on 04/11/2012
I think Cloggys' better off shutting his hypocritical Gob'...He hasn't even switched himself for years...Also this measly saving is only going to benefit people on-line or costomers on Direct Debit'...This doesn't go anyway further enough'..These money-grabbing leeches are still ripping us off with extorniate energy prices'...Also they didn't reduce Gas prices the last time either'..Just a piddling few per cent off Electricity....Total Rip Off Merchants the lot of em'...Bar-Stewards!!!
04:16 PM on 04/11/2012
AGREE, AGREE, AGREE, ITS RIP OFF BRITAIN AND ELECTION TIME. CLOGGY'S IN FOR A SHOCK. REMEMBER VOTERS!! THE LIES,THE LIES, AND MORE LIES TO COME.
photo
casual agent
Advocate for social justice
06:07 PM on 04/11/2012
I wouldn't be surprised if these throwbacks from the Hanovarians' brought back the Window and Candle Tax'...Talk about Down-Turn Abbey..lol
12:42 PM on 04/11/2012
I just saw the interview with Nick Clegg regarding the energy companies. Wow the "average" family will save approx £100 per year. This will help families in this difficult period. I cannot comprehend what i will do with nearly £2.00 a week. perhaps it will go someway to my petrol price locally on average of £1.45p per litre, or my rising food costs. These rich politicians have no idea do they?
04:21 PM on 04/11/2012
They hav'nt a clue! most of the needy who need a lower tariff are on prepayment meters. Please tell Cloggy, he'll be shocked as Osbeen was about his wealthy friends fiddling their taxes.
12:01 PM on 04/11/2012
Time to take these essential services back into state control.

They should never have been placed on the market in the first place, Thatcher claimed competition between the various operators would bring down prices.

She lied.
photo
HUFFPOST SUPER USER
Ben Wilson
What's the story mourning Tories?
10:22 AM on 04/11/2012
Energy is a cartell. All the companies sell electricity to each other, meaning there's a middle man, meaning the price is higher than it needs to be. The companies never offer different rates...What they do is share a set of special offers which they cycle round, i think, quarterly. The saving works out pretty much the same, and no one looses out becuase they are buying the stuff of each other. Make no doubt, some of the price rises have been ONLY to fund bonuses. well allegedly they have been at one certain company.
They tell their employees to tell you "we are the only business telling our customers to use less of our product" - It supposed to be some form of cure all comeback to any complaints.
10:12 AM on 04/11/2012
PLEASE Mr Clegg! 40% hike autumn 2010. another 40% hike Summer 2011. Your lot: at cake and did NOTHING.

Hail the super rich, the mighty 1%
09:18 AM on 04/11/2012
Can someone remind me again who Nick Clegg is.
04:24 PM on 04/11/2012
Please don't even mention his name. I beleive he's known as 'lexxg' " Cloggy"