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David Cameron energy price pledge row deepens David Cameron in 'lowest' energy tariff vow
(about 3 hours later)
  
The government has played down a pledge by Prime Minister David Cameron that energy firms will be forced to give all customers the lowest tariff. David Cameron has sought to clear up a row over the government's plans on energy by promising legislation to "ensure customers get the lowest tariff" on gas and electricity.
Mr Cameron made the surprise announcement on Wednesday at prime minister's questions. On Wednesday, the prime minister told MPs energy firms would be forced to give all customers the lowest tariff, sparking confusion about the policy.
But a minister summoned to the Commons to explain what the PM meant said the details had still to be worked out. The energy department said the details had yet to be worked out.
John Hayes vowed to help consumers "get the best deal" - but Labour accused the government of being in "chaos". Labour accused the government of doing a "U-turn" and being in "chaos".
Shadow energy secretary Caroline Flint said it had been a "shambolic mismanagement of energy policy" in what was "probably the quickest U-turn in British history".Shadow energy secretary Caroline Flint said it had been a "shambolic mismanagement of energy policy" in what was "probably the quickest U-turn in British history".
Mr Hayes told MPs the Energy Bill, which the government plans to publish next month, will reform the energy market and increase competition. Arriving for an EU summit in Brussels, Mr Cameron said: "I want to be on the side of hard-pressed hard-working families who often struggle to pay energy bills.
Confused? "That's why I said in the House of Commons yesterday we're going to use the forthcoming legislation - the Energy Bill coming up this year - so that we ensure that customers get the lowest tariffs."
Well, you've every right to be. Earlier on Thursday, Energy minister John Hayes was summoned to the Commons to explain to MPs what Mr Cameron had meant by his remarks at prime minister's questions.
The government say they want to introduce legislation to help consumers with their fuel bills. That much is clear. He said the Energy Bill, which the government plans to publish next month, will reform the energy market and increase competition - but he stopped short of repeating Mr Cameron's pledge to force firms to put customers on the lowest tariff.
What is a good deal less clear is if they plan - as the prime minister told MPs on Wednesday - to make companies pass on the lowest tariffs.
In other words, to use legislation to force firms to give customers the best deals available.
Today ministers have carefully refrained from repeating Mr Cameron's tough message.
Indeed Energy Minister John Hayes said ministers would evaluate existing voluntary agreements "to see if legislation is needed."
This confusion has prompted Opposition accusations of another omnishambles - or as some on Twitter have begun to refer to it "a combi-shambles".
And at a time when the government is seeking to re-assert its credentials for competence - in the wake of the West Coast Rail upset - it's a row Mr Cameron could well have done without.
He said the government needed a "robust" relationship with the six big energy firms and would take the "necessary steps to ensure people get the best possible deal".He said the government needed a "robust" relationship with the six big energy firms and would take the "necessary steps to ensure people get the best possible deal".
A number of options were being considered, he confirmed, including an evaluation of whether voluntary agreements made by the energy companies in April should be "made binding" through legislation.A number of options were being considered, he confirmed, including an evaluation of whether voluntary agreements made by the energy companies in April should be "made binding" through legislation.
Under this voluntary arrangement the six main energy providers agreed to contact customers once a year to tell them what the best tariff is for them, and how to get it and to contact customers coming to the end of a fixed-term contract with the same advice.Under this voluntary arrangement the six main energy providers agreed to contact customers once a year to tell them what the best tariff is for them, and how to get it and to contact customers coming to the end of a fixed-term contract with the same advice.
"This is a complicated area and we will discuss with the industry, consumer groups and the regulator in order to work through the detail," Mr Hayes said."This is a complicated area and we will discuss with the industry, consumer groups and the regulator in order to work through the detail," Mr Hayes said.
Speaking to the BBC, Energy Secretary Ed Davey confirmed he was working on a plan to require energy companies to inform customers of the lowest tariffs available, but did not mention the prime minister's more radical proposal to force them to charge the lowest tariff.
"I've been working with the deputy prime minister and others, working with the energy companies, to try to drive more competition, to get them to agree that they will tell their customers what are the best available tariffs, so customers can save money," he said.
At Prime Minister's Questions on Wednesday, Mr Cameron said: "I can announce... that we will be legislating so that energy companies have to give the lowest tariff to their customers, something that Labour didn't do in 13 years, even though the leader of the Labour Party could have done because he had the job."At Prime Minister's Questions on Wednesday, Mr Cameron said: "I can announce... that we will be legislating so that energy companies have to give the lowest tariff to their customers, something that Labour didn't do in 13 years, even though the leader of the Labour Party could have done because he had the job."
However, the Department of Energy and Climate Change later played down suggestions that companies would be forced to move customers onto cheaper deals. However, the Department of Energy and Climate Change later appeared to play down suggestions that companies would be forced to move customers onto cheaper deals, sparking confusion about the government's position.
The main energy firms said they knew nothing of the plan or of the government's intention to put it into legislation.The main energy firms said they knew nothing of the plan or of the government's intention to put it into legislation.
Shadow energy secretary Caroline Flint said Mr Cameron had thrown energy policy into "confusion", causing "chaos" in the energy industry.Shadow energy secretary Caroline Flint said Mr Cameron had thrown energy policy into "confusion", causing "chaos" in the energy industry.
She said: "We all misspeak from time to time and the prime minister was under a lot of pressure yesterday.She said: "We all misspeak from time to time and the prime minister was under a lot of pressure yesterday.
"But for the government to spend a day pretending to have a policy they have no intention of implementing is no way to run the country.""But for the government to spend a day pretending to have a policy they have no intention of implementing is no way to run the country."
Angela Knight, chief executive of the Energy UK - the trade association for the energy sector - told BBC News more clarity was needed on the government's position, but she stressed the energy companies had already made progress.Angela Knight, chief executive of the Energy UK - the trade association for the energy sector - told BBC News more clarity was needed on the government's position, but she stressed the energy companies had already made progress.
She said the industry had already tackled "really important things" such as "easily understandable tariffs, much fewer tariffs and assisting people as to how they can found out exactly which one is suitable for them".She said the industry had already tackled "really important things" such as "easily understandable tariffs, much fewer tariffs and assisting people as to how they can found out exactly which one is suitable for them".
Business groups warned forcing companies to give customers the cheapest tariffs could damage competition in the market.Business groups warned forcing companies to give customers the cheapest tariffs could damage competition in the market.
Deputy director general of the CBI Neil Bentley said "uncertainty" and "scare stories" about the government's commitment to the energy market could "create a lot more uncertainty for companies looking to invest in the UK".Deputy director general of the CBI Neil Bentley said "uncertainty" and "scare stories" about the government's commitment to the energy market could "create a lot more uncertainty for companies looking to invest in the UK".
But consumer group Which? urged Mr Cameron to "stick to the promise" he made in Parliament.But consumer group Which? urged Mr Cameron to "stick to the promise" he made in Parliament.
"Just giving people information on the lowest tariff is not enough when trust is at an all-time low in the industry and switching levels are falling," Which? said."Just giving people information on the lowest tariff is not enough when trust is at an all-time low in the industry and switching levels are falling," Which? said.
Greenpeace said the government's energy policy was now "as confusing as British Gas tariffs" and the UK needed to do more to reduce its reliance on gas.Greenpeace said the government's energy policy was now "as confusing as British Gas tariffs" and the UK needed to do more to reduce its reliance on gas.