Cheaper Power Tariffs Under Energy Shake-Up

Energy Secretary Ed Davey will flesh out proposals later to ensure all households are on the cheapest gas and electricity tariffs available.

After weeks of confusion about the Government's plans to simplify the market and reduce bills for hard-pressed families, the Liberal Democrat is expected to use an appearance before the Energy Select Committee to give more details.

It is thought energy firms may be prevented from offering more than four tariffs and be required to automatically move customers on to the cheapest one.

The move comes amid long-standing concerns that many households are paying hundreds of pounds a year more than is necessary for gas and electricity because of the confusing array of tariffs.

Ed Davey insists the Government backs a low carbon economy

The issue has become more acute in recent years because of rising wholesale prices that have seen energy charges soar.

Meanwhile, MPs have called on Chancellor George Osborne to reassure investors the Treasury is committed to moving towards a greener economy.

Mr Osborne must use the autumn statement next month to end the uncertainty over the direction of energy policy, which is undermining investment in the UK's power sector, the parliamentary Environmental Audit Committee (EAC) said.

MPs say George Osborne must "end the uncertainty"

The EAC also added its voice to calls from business leaders, trade unions and green groups for the Energy Bill, due to be published before the end of November, to include a target to slash emissions from the power sector by 2030.

The cross-party committee's chairwoman Joan Walley said: "The Treasury must end the uncertainty on energy policy and give investors and businesses the confidence to seize the enormous opportunities presented by new clean technologies."

Friends of the Earth's head of campaigns Andrew Pendleton said: "MPs are right to slam the Chancellor - his gas-fuelled economic strategy will send fuel bills soaring, jeopardise jobs and scupper UK efforts to tackle climate change.

"The Treasury seems hell-bent on killing off Britain's growing green economy, despite the tens of thousands of jobs it can create and business leaders' group CBI's pleas for more backing."

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