John Baron MP presses Secretary of State for Energy to stand up to energy suppliers

November 29, 2012

MP expects energy suppliers to object to tariff reform proposals

Today in the House of Commons, the Secretary of State for Energy and Climate Change, Rt Hon Ed Davey MP, made a statement on the Government’s energy policy prior to the publication of the Energy Bill. As Chairman of the Billing Stakeholder Group, John Baron put forward proposals which have been accepted by both Ofgem (in its consultation) and the Government – the key proposal being to oblige energy suppliers to place on the face of a bill how much that customer could save, in pounds and pence, were they on their supplier’s cheapest standard direct debit tariff. This will encourage greater transparency and competition, and thereby lower household energy bills. The energy suppliers have objected to these proposals.

In the House of Commons, John said,

“I congratulate the Government and Ofgem for accepting the key proposal of the Billing Stakeholder Group, which would oblige energy suppliers to state on the face of bills how much customers will save if they were on that supplier’s cheapest standard direct debit tariff. The energy suppliers object to this proposal, which is presently subject to consultation. May I encourage the Secretary of State to do what he can to ensure these suppliers do not block this proposal?”

In response, the Secretary of State congratulated John on his work in this area, and made it clear that the Government would do all it can to support his proposal.

John said afterwards,

“The Government has done more to help customers lower their energy bills than any previous government. Accepting my proposal is a key part of the Government’s commitment in this area. We must now ensure the energy suppliers are not allowed to water this down.”

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