New figures show that despite Cameron's promises, energy companies are still not charging customers their lowest tariff
New figures uncovered by Labour’s shadow Energy and Climate Change secretary Caroline Flint have revealed that three in four households are being overcharged for their energy bills.
In 2012, David Cameron promised that energy companies would be compelled to give customers the lowest possible tariff. Since then he has promised 17 times in the House of Commons that he will make energy suppliers automatically put customers on their supplier’s lowest tariff.
But more than two years on, the new figures show that three-quarters of households are paying as much as £250 a year more than their supplier’s cheapest tariff would cost them.
The analysis reveals that 75 per cent of households are on their supplier’s standard variable tariff, which is on average £180 a year more expensive than the cheapest tariff. For example British Gas’s standard variable tariff is £1,156 and its cheapest is £950; NPower’s standard is £1,169 and its cheapest is £927.
Labour has reiterated its call for regulators to be given the power to force energy suppliers to cut bills, and to freeze prices so that bills cannot rise until 2017.
Caroline Flint MP said of her findings:
“More than two years after David Cameron promised to make energy companies put all customers on the lowest tariff, millions of households are still being routinely overcharged by hundreds of pounds every single year.
“That’s why the next Labour Government will freeze energy prices until 2017, so that bills can fall but not rise, give the regulator the power to force energy suppliers to cut their prices and end overcharging once and for all.”
Ruby Stockham is a staff writer for Left Foot Forward. Follow her on TwitterLike this article? Sign up to Left Foot Forward's weekday email for the latest progressive news and comment - and support campaigning journalism by making a donation today.