The Government has introduced new provisions on domestic tariffs in the Energy Bill to ensure that all households will be able to get the best deal for their gas and electricity. The new clauses will give legislative backing to Ofgem’s Retail Market Review proposals and will ensure that energy companies place consumers on the cheapest tariff that meets their preference. It will also mean that suppliers will have to provide better information and fewer tariffs to make it easier for consumers to shop around for the best deals.
That means that this week’s Energy Bill will save families in Dumfriesshire, Clydesdale and Tweeddale up to £158 on their utility bills, by helping people to switch to the cheapest tariff, local MP David Mundell has revealed.
Mr Mundell believes this will be much welcomed news for a number of his constituents who are faced with high energy bills and believes that the new provisions would make sure that the most vulnerable households are protected and will see the greatest benefit.
The MP said that by contrast, Labour's planned scheme for utilities would mean an immediate rise in bills of £61 on average. This was likely to be a minimum figure, as Ed Miliband the Labour Leader also wanted to reorganise the utilities market, to force energy to be "pooled" for auction. This idea was abandoned under the last Labour Government because it drove up energy bills.
Mr Mundell said the Energy Bill was delivering on David Cameron's promise to help families with the rising cost of living, and would help put money back in people’s pockets.
Commenting Mr Mundell said: “The cost of living is a big issue from many of my constituents across Dumfriesshire, Clydesdale and Tweeddale, and this announcement shows that the Government is listening to those concerns. The Energy Bill will put cash back in people’s pocket which means that hardworking families across this region will be able to save up to £158, by switching to the cheapest energy tariff, which these plans will give everyone the chance to do. Lots of people have been in touch with me about this issue and I am pleased that more is now being done to protect consumers and make sure that people have all the information they need to help them choose the right energy deal for them.”