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Woman feeling the temperature of radiatorQ: Is it true I’ll soon be automatically switched on to the cheapest energy tariff?

A: I wouldn’t say ‘soon’, but by the summer of 2014, energy firms will be forced to put customers onto their cheapest deals.

At the moment, there are over 400 different tariffs for customers to choose from, making it extremely difficult for anyone to know if they are on the best deal for them.

The new government plans will mean all energy firms will be forced to reduce the number of tariffs to a maximum of four each for both gas and electricity.

Then all customers will be offered the cheapest tariff available to them.

Fingers crossed that this simplifying of the energy tariffs and the legal requirement for customers to be switched to the cheapest deal for them will mean more customers paying less for energy.

However, many consumer groups are worried less tariffs will simply mean less competition in the market and therefore higher prices. Watch this space…

Andrea Ventress, money expert.

 

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