Calls for reforms in energy market to help poor

THERESA May is being urged to make good her promise to help struggling families by embarking on radical reforms to the energy market in the face of soaring household bills.

The managing director of independent energy player First Utility has called on the Government to force the so-called Big Six providers – British Gas, EDF, E.On, Npower, Scottish Power and SSE – to automatically move millions of customers on the most expensive standard variable tariffs to the cheapest on the market.

Ed Kamm said: “I’d like to see the most vulnerable customers – pensioners and those receiving some form of benefits – automatically moved to the cheapest tariffs without an exit fee. For example, we’ve looked at the warm home discount group, about 2.2 million customers, they are more inherently likely to be on a standard variable tariff, which is a bad deal.

“Currently, the Government gives them £140, but then the Big Six energy firms are overcharging them by up to £300.”

He is also calling for more transparency and communication in the sector, where energy firms would be legally obliged to provide customers on standard variable tariffs with a list of the cheapest deals in the market.

Mr Kamm believes his proposals will lead to more competition in the energy market and therefore better deals for consumers.

His comments come after a spate of price increases since the turn of the year, hammering already struggling consumers.

The Government is expected to issue a green paper in the spring to address rip-off energy bills.