"Telling customers which deal is cheapest is too difficult"

Updated: 
Energy saving lightbulbDavid Cameron's proposed energy reforms have been dealt a blow as the boss of one of the big six energy suppliers has suggested that plans to automatically place customers on their cheapest deal could be too difficult to implement.

Keith Anderson, chief corporate officer for ScottishPower, when giving evidence to the Energy Bill Committee in Parliament said: ""At its highest level it sounds perfectly sensible and laudable to say, 'let's put everybody on the cheapest tariff'. But you start to look at the detail and it becomes very complicated and it's very difficult."


Mr. Anderson also suggested that the logistics of identifying each individual customer's cheapest deal would be tricky, because of the intricacies of different energy tariffs and customer usage.

He said: "They actually have to sign to say that they want that tariff. There are a lot of complications that need to be worked through in terms of the mechanics of how it would work. And a lot of complications around the terms of what is the cheapest for that person, because that's not always easy to work out either."

For hard-pressed consumers across the UK who have been hit hard by price rises this will be a concern, as people are often confused about all of the options available when choosing a gas and electricity supplier. The best resource for those looking to see all of the cheapest deals available to them is not to wait for potential legislation but to use a price comparison service which compares all of the suppliers and available tariffs.

Taking control of your energy costs by comparing suppliers yourself is imperative in order to beat the recent price rises.

The cheapest gas and electricity deals

Supplier

Tariff

Average Cost

Saving vs Typical Bill*

Notes

First Utility

isave v14 (with Paper Billing)

£1,150

£250

Prices fixed for 3 months then variable. Cancellation fees apply

Co-op Energy

Pioneer

£1,157

£243

No cancellation fees.

First Utility

isave Fixed v6

£1,170

£230

Prices fixed until 30 April 2014. Cancellation fees apply.

OVO Energy

New Energy Fixed

£1,172

£228

Prices fixed for 12 months. Cancellation fees apply.

EDF

Blue +Price Promise June 2014

£1,182

£218

Prices fixed until 30 June 2014. No cancellation fees.



* based on average dual fuel tariff costing £1,410 (Source: Energyhelpline January 8, 2013). All costs are for a yearly average usage dual fuel household paying by monthly direct debit. Average usage defined by Ofgem as 16,500 kWh p.a. of gas and 3,300 kWh p.a. of electricity.

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