Prime Minster David Cameron has vowed to save households money by introducing a law which will force energy companies to lower their bills.
Last week it was announced that energy companies including British Gas will be increasing their tariffs just as the winter month’s start to approach and when more energy is used. Families around the UK are set to face a 6% jump in their energy bills which will increase a dual-fuel bill by £80 and an annual bill to £1,300.
David Cameron has planned to act on the increases after 12 months of energy companies not fixing their tariffs along with the latest news of more increases. A new law will be introduced so that energy companies have to give their customers their lowest tariff. It is now hoped that millions of households we will see a fall in their energy bills and it is expected that four in five households will be paying less.
The announcement came as a surprise for energy companies and consumer groups who have estimated that households may be faced with the prospect of energy companies withdrawing their cheapest tariff. It was also highlighted that there will be no competition between the six energy companies as all customers will be offered the same tariff under the new law.
David Cameron also expects the new law to help make the UK a green country which will help the economy to grow.
An official spokesman for David Cameron commented: “We have asked energy companies to take action themselves and make clear what the lowest available deals are.
“The point is, in practice this market is not operating for everyone. A small minority of people are actually switching deals; therefore we need to push some of this responsibility on to the energy companies.”
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By Amanda Bainbridge