What the Government is doing to keep your energy bill down
Updated 9 March 2016
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1. Helping you lower your energy bills
The cost of your energy bill is determined by a variety of factors including wholesale, network and environmental costs. Government is keeping bills as low as possible by encouraging more competition; making switching energy supplier easier; and controlling public subsidies paid for through energy bills.
2. Giving you more choice: The Big 37
Government is making it easier for new companies to enter and compete in the energy market and there are now 37 suppliers to choose from; that’s more than double the number in 2010. It means that independent energy companies now make up 15% of the dual fuel energy market, up from 1% in 2010.
3. Making switching energy supplier easier
By shopping around and taking advantage of the best energy deals on the market, you can save around £200. In 2015, nearly 4 million people switched energy supplier. Government has made it easier for more people to switch by working with industry to cut the time it takes to switch from 35 days to 17 days. Government action has also led to energy suppliers including Quick Response (QR) codes on energy bills so you can switch with a couple clicks on your smartphone.
4. Controlling the impact of policies on bills
Government is controlling public subsidies paid for by your bills - actions we’ve taken since 2014 to control the costs of green policies on household bills has saved around £30-35 per year.
5. Making the energy sector fairer
The Competition and Markets Authority is investigating how fair the energy market is for consumers and they’re due to report in 2016. This Government is committed to acting on the final recommendations from the CMA and we will not hesitate to take further action where the market is not delivering a fair deal for bill payers. We’re also giving Ofgem more powers to crack down on energy suppliers who aren’t treating their consumers fairly.
6. What we’re going to do
Government continues to work with the regulator, energy suppliers and others to keep your energy bill as low as possible. Ofgem, with Government support, is making changes so that you can switch energy supplier and get a better deal in just 24 hours. Smart meters in every home and business from 2020 will help support next day switching by making bills more accurate and providing real time data on how much energy you use.