This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.bbc.co.uk/news/business-20136180
The article has changed 4 times. There is an RSS feed of changes available.
| Version 0 | Version 1 |
|---|---|
| Energy bills: Ofgem says key difference on cost plans | Energy bills: Ofgem says key difference on cost plans |
| (35 minutes later) | |
| The energy regulator has told MPs that there is a "key difference" between its plan for customers' bills and a proposal by the Prime Minister. | The energy regulator has told MPs that there is a "key difference" between its plan for customers' bills and a proposal by the Prime Minister. |
| David Cameron said that energy firms would be forced to put customers on their lowest tariffs, but Ofgem simply wants the details of cheaper deals to be put on bills. | David Cameron said that energy firms would be forced to put customers on their lowest tariffs, but Ofgem simply wants the details of cheaper deals to be put on bills. |
| The regulator told MPs that it wanted people to "opt-in" to cheaper deals. | The regulator told MPs that it wanted people to "opt-in" to cheaper deals. |
| Representatives were appearing before the Commons' Energy Committee. | Representatives were appearing before the Commons' Energy Committee. |
| Andrew Wright, Ofgem's senior partner for markets, said that the regulator and the Prime Minister had the "same objective" of getting customers onto the cheapest deals, and making details clear to them. | Andrew Wright, Ofgem's senior partner for markets, said that the regulator and the Prime Minister had the "same objective" of getting customers onto the cheapest deals, and making details clear to them. |
| However, he admitted that there was a key difference between Ofgem's recently announced proposals and the policy announced by Mr Cameron at Prime Minister's Questions. | However, he admitted that there was a key difference between Ofgem's recently announced proposals and the policy announced by Mr Cameron at Prime Minister's Questions. |
| He said under the regulator's plan, customers would have to opt in to a cheaper deal. Under Mr Cameron's plan, customers would be automatically switched and have to opt out of the move. | He said under the regulator's plan, customers would have to opt in to a cheaper deal. Under Mr Cameron's plan, customers would be automatically switched and have to opt out of the move. |
| "We haven't seen the details [of the PM's proposal] yet, but hope they complement rather than conflict with ours," he said. | "We haven't seen the details [of the PM's proposal] yet, but hope they complement rather than conflict with ours," he said. |
| He described Mr Cameron's comments as a "significant intervention". | He described Mr Cameron's comments as a "significant intervention". |
| Timetable | Timetable |
| Ofgem announced proposals earlier this month to ban complex multi-tier tariffs, provide personalised information to help consumers find their best deal, and ensure customers default to the cheapest option at the end of fixed-term contract. | Ofgem announced proposals earlier this month to ban complex multi-tier tariffs, provide personalised information to help consumers find their best deal, and ensure customers default to the cheapest option at the end of fixed-term contract. |
| It is proposing to limit each energy supplier to no more than four core tariffs for each fuel. Dual fuel discounts will be presented separately to increase clarity. A pilot scheme will force suppliers to tell the most vulnerable customers, and those who have not switched for three years. | |
| These changes could be enforced by next summer, using the regulator's existing powers, although the energy companies could appeal. | These changes could be enforced by next summer, using the regulator's existing powers, although the energy companies could appeal. |
| The plans were announced two days after Mr Cameron surprised the energy industry when he said during Prime Minister's Questions that the government would introduce laws to make suppliers give customers the cheapest tariffs. | The plans were announced two days after Mr Cameron surprised the energy industry when he said during Prime Minister's Questions that the government would introduce laws to make suppliers give customers the cheapest tariffs. |
| Such a move would require a change in the law through the upcoming Energy Bill, which will need to be agreed by Parliament. | Such a move would require a change in the law through the upcoming Energy Bill, which will need to be agreed by Parliament. |
| Mr Wright said: "Not all consumers will be in positions where they will necessarily want to be moved onto the cheapest deal with their supplier." | |
| This may include people paying a little more for green tariffs, or those choosing the stability of fixed deals, rather than variable deals that might be a little cheaper. | |
| 'Intent' | |
| The chairman of the committee, Tim Yeo, said that there had been no hint of the new policy when proposals for the Energy Bill were scrutinised by the committee previously. | |
| Energy minister Greg Barker blamed Ofgem for delaying the publication of its own plans, adding that the situation was "eloquently expressed" by the Prime Minister. | |
| "Our thinking is running in the same direction [as Ofgem's]," he told the committee, following the evidence from Ofgem. | |
| "He was announcing the intent, not the detail." | |
| He added that new legislation was the "desirable" outcome of the government's thinking to "help customers get the cheapest tariff". |