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Millions will get lower energy bills by automatically switching to cheaper tariffs


MILLIONS of Brits could be switched to cheaper energy tariffs automatically, saving them hundreds of pounds a year on bills.

Under new proposals set out by the government today, households would be moved on to a better deal without having switch energy companies themselves.

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Families could save money on bills under new plans[/caption]

Automatic switching would help those on pricier default energy tariffs avoid paying more than they need to.

Less than half of billpayers shop around for a better deal, according to the energy regulator Ofgem.

Now the government has unveiled plans to tackle the so-called loyalty penalty, with a trial of automatic switching set to take place in 2024.

Energy customers will be moved to a cheaper tariff unless they decide to opt out, the proposals say.


A new ‘opt out’ system would effectively kill the ‘standard variable tariff’ and slash bills for millions of loyal customers who can’t or don’t switch.

Kwasi Kwarteng the business and energy secretary, said: We want to unleash a wave of competition within the energy market and keep energy bills low so households across the UK can keep more money in their back pockets.”

The government will consult on how the scheme will work.

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