Government to introduce new energy laws

Amid mounting concern about the soaring cost of power, the Prime Minister vowed to legislate to tackle the often-confusing array of prices.

"I can announce that we will be legislating so that energy companies have to give the lowest tariff to their customers," he told MPs during Prime Minister's Questions. His intervention follows a string of above-inflation price hikes by major energy companies in recent days.

Ministers have previously encouraged customers to shop around to make sure they have the best deal. They have also announced moves to require energy companies to inform their customers if they could be on cheaper tariffs.

But the forthcoming Energy Bill will go further by introducing a requirement for companies to give people the best tariff for their circumstances.

The announcement came after consumer body Which? called for an urgent independent review into the rising cost of household energy bills.

In a letter to the Prime Minister, Which? executive director Richard Lloyd said the energy market was "broken". A review was needed to look at rising prices and whether competition between suppliers could be made to work more effectively to help consumers, he insisted.

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