Overview

This bill mandates that energy companies in the UK automatically enroll customers aged 75 and over in their cheapest available tariff. The bill also requires annual notification of the cheapest tariff to all domestic customers and annual reporting by Ofgem on the impact of pricing on over-75s.

Description

Key Provisions:

• Automatic Cheapest Tariff: Energy companies must proactively transfer customers aged 75 or older to their cheapest available tariff, based on their payment method and past usage.
• Annual Notification: All domestic customers will receive annual notification of their cheapest available tariff.
• Opt-out provision: Customers under 75 or those who explicitly request not to receive the information are exempt from the annual notification.
• Ofgem Reporting: The energy regulator, Ofgem, must include an assessment of the impact of energy pricing structures on over-75s in its annual report.
• Geographic Extent: The bill applies across England, Wales, Scotland, and Northern Ireland.
• Commencement: The Act will come into force two months after it is passed.

Government Spending

The bill does not directly specify additional government spending. However, the increased workload for energy companies in identifying and switching customers, and the additional reporting requirements for Ofgem, could indirectly lead to some administrative costs, though the magnitude is currently unspecified.

Groups Affected

• Customers aged 75 and over: This group will directly benefit from being automatically placed on the cheapest tariffs, potentially saving them money on their energy bills.
• Energy companies: These companies will face administrative costs associated with identifying eligible customers and transferring them to cheaper tariffs, and also increased reporting burdens.
• Ofgem: The energy regulator will have increased reporting responsibilities concerning the impact of pricing on older customers.
• All domestic energy customers: This group will benefit from the annual notification of the cheapest available tariff allowing them to actively manage their bills.

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