The government will come up with proposals this week to prevent loyal customers from being ripped off, considering two options to help make the market more competitive. The first « opt-in » switch gave people an easy way to switch to a cheaper rate when their original contract ends. With the second option, the « opt-out » switching, people are automatically transferred to a more competitive tariff if they do not want to.
A Whitehall source said: « This government is revolutionizing the way the UK supplies its homes, buildings and industries – but we are also redesigning the system for the consumer.
« We don’t believe energy companies should be able to renew contracts indefinitely or punish loyal customers. That’s why we’re going to make it even easier for people to switch to cheaper tariffs. «
Economy Minister Alok Sharma wants to « trigger a wave of competition » and end the so-called « loyalty penalty ». .
The Warm Home Discount Scheme, which cuts utility bills for eligible retirees and low-income households by £ 140, is expected to drop to an additional 750 by 2026. 000 households expanded. This increases the number of eligible households to almost three million.
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The latest measures follow the program announced in September for « green houses » in the amount of 2 billion. GBP. It provides grants of up to 10. £ 000 available for those on the lowest incomes to insulate their homes.
The plans will be part of a broader set of proposals in this week’s Energy White Paper to « clean up » UK electricity supplies, create green jobs and keep bills affordable as the country strives to reduce net carbon emissions by 2050 Bring zero.
The plan to revise energy costs was welcomed by HaydenWood, Bulb’s managing director for renewable energy.
He said, « You would be shocked if your local coffee shop charged you more for being a regular – it should be no different with energy companies. «
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