Households will get energy firm's cheapest deal, Government says

It has tabled an amendment to the Energy Bill to force providers to limit the number of tariffs they can offer and to ensure customers are taken off poor value "dead tariffs", which are deals no longer on offer to new customers.

While not explicitly stated in today's announcement, a Department for Energy and Climate Change spokeswoman says this effectively means these customers, and all other users, will be moved to the cheapest deal from their provider because there will only be one tariff available per type.

For example, there will just be a single online deal, or one green tariff.

Today's announcement merely confirms plans already set out by the Prime Minister. David Cameron pledged last year to bring in legislation forcing energy providers to give consumers their cheapest deal.

In March, the Government will announce full details on how its tariff overhaul will actually work. The new regime will come into effect next year.

Whatever happens, while your tariff might be your supplier's cheapest, it won't necessarily be the cheapest deal on the market.

On that theme, we yesterday launched Cheap Energy Club, which monitors your tariff to ensure you're always on the best deal.

Simpler tariffs

Under the Government's plans, energy bills will be simplified, becoming much clearer for customers to understand, it insists.

Energy Secretary Ed Davey says: "I am determined to ensure that consumers get the cheapest tariff they can.

"So, we will amend the Energy Bill to reduce the bamboozling array of tariffs available on the market and to simplify bills, whilst continuing to work with Ofgem to deliver a simpler, more competitive market."