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November 23, 2012 6:04 pm
Energy companies will be restricted to offering just four tariffs each for gas and electricity under a government shake-up of household energy bills.
Under the plans, utility companies will also have to put customers on the cheapest deal available.
However, consumer groups warned the plans could result in energy companies withdrawing their cheapest rates.
“There’s a danger that forcing energy companies to offer everyone their ‘best’ tariff could mean that they simply remove the best, or more ‘niche’ tariffs from the market, stifling competition,” said Clare Francis, consumer finance expert at Moneysupermarket.com.
The government will consult with industry until January. It wants all customers to be placed on the cheapest appropriate tariff by the summer of 2014 at the latest.
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