David Cameron: Energy firms must offer lowest tariff

ENERGY companies are to be forced to offer their customers the lowest available tariff after Prime Minister David Cameron announced a crackdown on higher prices.

Amid concern about rocketing fuel bills, Mr Cameron yesterday signalled plans to introduce legislation to tackle the often-confusing array of tariffs.

His intervention follows a string of above-inflation price rises by major energy companies in recent days, with ScottishPower announcing a rise of 7 per cent earlier this week and Scottish Gas and NPower also putting prices up.

Ministers have encouraged consumers to shop around and make sure they are on the best available deals. They have also announced moves to require energy companies to inform their customers if they could be on cheaper tariffs.

However, the Energy Bill will go further by introducing a requirement for companies to give people the best tariff for their circumstances.

The move is intended to tackle concerns that many householders are paying more than they need to because of the bewildering offerings available. Consumer campaign group Which? said the announcement was a “big moment”. Executive director Richard Lloyd said: “Legislating so that energy companies have to give the lowest tariff to their customers is a big statement from the Prime Minister and acknowledges that competition in the energy retail market has failed.

“This is a big moment for consumers, but we must now see these words turned into action and see the detail from the government in the Energy Bill.”

Labour said the initiative was an admission of failure by the Prime Minister after the typical annual dual-fuel energy bill had risen by more than £200 since the coalition came to power.