Energy companies to tell customers about best tariffs


Updated on 11 April 2012 | 7 Comments

The 'Big Six' have agreed to send their customers an annual letter telling them if they are on the best tariff or not.

The Government has announced that it has reached an agreement with the ‘Big Six’ energy companies that they will send customers an annual letter advising them of their best energy tariff, if they're not on it already.

The letter will also be sent when a customer reaches the end of a contract. Vulnerable households, who are assisted by the Warm Front programme, will be sent two letters a year.

The ‘Big Six’ are British Gas, EDF, E.ON, npower, SSE and Scottish Power. They provide some or all energy to 99% of the UK’s customers.

Government figures show that seven out of 10 people are currently not on the best tariff for them. It’s estimated that the average household is spending £100 a year more on energy than it needs to.

There are currently a mind-boggling 120 different energy tariffs to choose from. As part of these measures, all the companies have agreed to simplify their tariffs.

However, energy price comparison Energyhelpline estimates that households could save up to £300 by switching to a different supplier.

Barcodes on energy bills

The Big Six companies will also investigate putting barcodes on bills. These barcodes, when scanned by a smartphone, will take a customer through to an online site to find quotes and compare tariffs.

And there will be funding for a second Big Energy Week to help people with their energy bills following a successful first event in January.

The companies have also agreed to commit to collective switching, where groups of customers club together to get the best deal. However, British Gas recently withdrew from Which’s Big Switch collective switching programme.

Compare gas and electricity prices here on lovemoney

More on energy bills:
EDF tops energy complaint tables again

EDF announces price promise and help for vulnerable

You’re subsidising your neighbour’s energy bills!

How to get free cavity wall and loft insulation

The Big Switch from Which?

Gas and electricity price 'reductions' are phoney!

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