Plans to get cheaper gas and electric bills for households have been revealed.

The UK Government has published its plans to help people find cheaper tariffs and help switching.

It said it wants to end the “loyalty penalty” where long standing customers are on higher rates and excluded from cheaper deals to entice new customers.

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It also wants to trial an ‘automatic switching’ where they are put on to cheaper tariffs when they become available.

It estimated that around 15 million customers are on default tariffs and are paying  hundreds of pounds more for their energy.

It would mean that around 1 million in Scotland could be paying more than they need to.

Switching provider is estimated by Ofgem to save customers and average of £290 a year.

Ofgem, the UK energy regulator said that around half of customers int eh UK shop around leaving many on higher tariffs than other customers.

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Under the plans published today, trials of a new system will take place in 2024, in which some consumers on costly tariffs would be automatically switched to cheaper ones on the market unless they opt out.

Kwasi Kwarteng, 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.

Glasgow Times:

“Although more of us are now shopping around for the cheapest tariffs, the existence of better deals on the market is not sufficient in itself to drive consumer behaviour. That’s why we will make the switching process even easier so we can tackle the ‘loyalty penalty’ and ensure everyone pays a fair price for powering their homes.

“An automatic switching system would ensure households get a fair deal, while new Price Cap legislation will enable continued protection until we’re confident the market is sufficiently competitive.”

Tom Lyon, Director of Energy at energyhelpline, said: “Opt-in switching is a proven initiative that will drive positive outcomes for the most disengaged consumers. We welcome these proposals and believe they could generate levels of long-term competition into the energy market like we’ve never seen before.

“Previous opt-in switching trials helped significant numbers of consumers switch energy suppliers than otherwise would have; a widespread rollout will empower customers to drive down the cost of their bills.”