Overview

This Energy Pricing Bill aims to prevent energy suppliers from charging existing customers more than new customers for the same service. It also mandates clearer communication about the cheapest available tariffs and requires an assessment of how current pricing affects vulnerable consumers.

Description

The bill introduces several key measures:

• Prohibition of Higher Tariffs for Existing Customers: Energy suppliers will be legally required to offer renewing customers a tariff no higher than what new customers would pay, including those found through price comparison websites.
• Assessment of Impact on Vulnerable Customers: The Gas and Electricity Markets Authority (GEMA) must assess how energy pricing affects vulnerable customers (financially or otherwise) and take steps to protect them if needed, using powers under the Gas Act 1986 and the Electricity Act 1989.
• Cheapest Tariff Messaging Rules: Suppliers must clearly advertise the cheapest tariff available to a customer, regardless of whether it's offered by the supplier itself, an affiliate, or a different company. This information must be included in their messaging about their cheapest tariffs.

The bill applies to England, Wales, and Scotland and comes into effect immediately upon passage.

Government Spending

The bill doesn't directly specify government spending. However, the GEMA's assessment of vulnerable customer impact and subsequent protective measures might involve increased administrative costs or the need for government support programs. No figures are provided in the bill text.

Groups Affected

This bill will primarily affect:

• Energy Suppliers: They will be subject to new regulations and licensing conditions, potentially impacting their pricing strategies and marketing.
• Existing Energy Customers: They will benefit from potentially lower energy bills if their renewal tariffs are no longer more expensive than those offered to new customers.
• Vulnerable Customers: This group may experience improved protection from exploitative pricing practices as a result of the GEMA's assessment and any subsequent actions.
• Gas and Electricity Markets Authority (GEMA): The authority will have new responsibilities in assessing pricing practices and protecting vulnerable customers.

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