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Comment from Co-operative Energy on David Cameron's new legislation announcement

Posted on 18 October 2012

Co-operative Energy welcomes the Prime Minister’s commitment to legislate in the forthcoming Energy Bill to require energy suppliers to give their customers their lowest available tariff. Co-operative Energy has always done this; indeed it has been a pledge to our customers from the day we launched.

We also welcome the fact that this commitment appears to put the onus on the supplier to take the action rather than on the consumer to initiate the change. Previous efforts to educate and inform consumers about switching tariffs have clearly not worked.

The devil will be in the detail of this reform. We expect the big energy suppliers to lobby hard to water down this commitment, as they make nearly all their retail profit from the 75% of consumers on standard tariffs who have rarely switched. We hope the Government has the resolve to see this commitment through to legislation and enforcement.

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