Press notice: 13/046

The Government is taking additional steps to make sure the 84% of households who don't switch can get the best deal, Ed Davey announced today. Switching energy suppliers could save households as much as £158 a year but only 16% switched between March 2012 and March 2013.

This builds on Ofgem's reforms to create a simpler, clearer and fairer market for energy consumers, which Government is backing through the Energy Bill. These reforms will move people off poor-value "dead" tariffs, reduce the number of core tariffs to four per gas and electricity supplier, and make bills easier to understand.

Publishing the Government's response to the discussion document "Ensuring a better deal for energy consumers", the Energy and Climate Change Secretary confirmed the Government's backing for Ofgem's market reforms and set out plans to:

• Ensure customers on uncompetitive legacy tariffs will be automatically moved to their supplier's cheapest variable rate tariff. Of the estimated 650 "dead tariffs", around a third could be poor value;
• Ensure customers who are on fixed deals will be automatically moved to their supplier's cheapest variable rate tariff when their fixed deal ends;
• Make clear to all other customers what the cheapest deal is that suits their preferences (such as getting a green tariff, or a fixed term tariff) and give the opportunity to switch;
• Provide £900,000 to set up a new Big Energy Saving Network to co-ordinate and provide advice on switching, tariffs and government support to help the poorest get warmer homes and lower bills;
• Require energy suppliers to provide information to consumers in a format that would allow it to be read by an electronic device, such as a smart phone;
• Give powers to Ofgem to take action to protect against poor practice by switching sites; and
• Consider what more needs to be done to promote collective switching, which in two early schemes has shown average savings of £133 and £223 per household.

Mr Davey said:

"When consumers are feeling the pinch, it's not right that 84% of households, including the most vulnerable, are put off switching or engaging in the energy market.

"Fundamental to overcoming this is Ofgem's reform of the retail energy market. This will make the market simpler and fairer, and we're using the Energy Bill to make sure these reforms are not delayed or frustrated.

"But we've got to do even more to put the best deals on a plate for people.

"This is why I'm announcing a new network of outreach by trusted organisations to help the most vulnerable in our communities. Trusted experts will provide meaningful, comprehensive advice on getting the best deal and support from government programmes.

"And I'm dragging energy bills into the 21st Century by requiring suppliers to include electronic information that will help millions compare and switch at the swipe of their smart phone.

"I want to turn the non-switchers into savvy switchers."

Powers being taken in the Energy Bill will also give Ofgem the power to ensure that consumers can be directly compensated when energy suppliers break the rules.

Notes for editors:

1. Read the Government response to the discussion document "Ensuring a better deal for energy consumers"
2. Ofgem set out proposals to reform the retail energy market on 21 February 2013.
3. The Government is using the Energy Bill legislate to ensure Ofgem is not frustrated or delayed in implementing its reforms of the domestic retail energy market.
4. DECC's latest public attitudes tracker (published on 30 April 2013) found that 16% of those surveyed switched energy supplier in the last year
5. Figures from Ofgem suggest consumers can save an average of £72 and a possible maximum of £158 per year by switching to the cheapest deal in the market for their payment method.
6. Members of the Big Energy Saving Network will be Citizen's Advice Bureau, Energy Saving Trust, Age UK, ACRE (Action with Communities in Rural England) and NEA (National Energy Action)
7. The Which? Big Switch collective switching scheme estimated saving around 37,000 participants an average of £223 per year. The first phase of Cornwall Together recorded average savings of £133.

Commenting on today's fuel poverty annual report and fuel poverty statistics for 2011, Energy and Climate Change Minister Greg Barker said:

"I am very encouraged by this modest fall in the number of households living in fuel poverty.

"But there is absolutely no room for complacency. There is still an unacceptably high number of people living in cold, damp, unhealthy conditions.

"However after years of year on year growth in the number of fuel poor households we are starting to make progress, but the Coalition Government is determined to do even more.

"While we can't control volatile international energy prices, which always have the potential to undermine progress, it is clear that our determined focus on improving home energy efficiency is proving a highly effective weapon in this battle."

• Read the statistical release
• Read the annual report and additional annexes

The 2013 Annual Report on Fuel Poverty Statistics is published today, 16 May 2013 by the Department of Energy and Climate Change. The publication covers new data for England for 2011, and an estimated level of fuel poverty in the UK for 2011.

The main report and additional annexes are available on the GOV.UK website

The first meeting of the new offshore wind sector council will take place today co-chaired by Keith Anderson, Chief Corporate Officer ( CCO ) of ScottishPower and Business and Energy Minister Michael Fallon.

The meeting comes as government and the industry prepare to deliver the offshore wind industrial strategy which will be published in the coming months. The strategy aims to increase investment in the UK supply chain and outline how government and industry will work together to build and maintain a competitive advantage in this crucial sector.

Business and Energy Minister Michael Fallon said:

Britain has a real chance to lead the world in the offshore wind sector, not least because of our weather. I am determined that government and industry should work together and make sure the UK makes the most of the opportunity for growth and jobs that this sector presents, as well as a vital contribution to our energy mix.

This first meeting of the offshore wind industry council is a step towards realising that objective. By building an enduring partnership between government and industry, we can set out a clear strategy which encourages the development of the supply chain, and delivers a strong benefit to the UK economy.

Keith Anderson, CCO of ScottishPower, said:

It is vital that the renewable energy industry and the government continue to work closely together to unlock all of the social and economic advantages of developing offshore wind power, as well as the major environmental benefits.

The UK continues to lead the world in offshore wind, and we need to use this position to leverage as much global investment as possible to secure jobs across the supply chain, and see infrastructure upgraded to support this industry. The offshore wind industrial strategy is an important development that should act as a blueprint to guide both the industry and the government in helping the UK to achieve these goals and benefits.

The offshore wind industrial strategy is one of eleven sectors that the government has chosen to develop a long term strategic partnership to help realise the potential for growth this industry has in the UK.

Already the government has published strategies in the Health and life sciences, aerospace, nuclear and oil and gas sectors which aim to boost skills, research and development, develop the UK supply chain and maintain the UK's market share in these high growth industries.

Notes to editors

1.The full list of offshore wind industry council members is:

2.The government's industrial strategy is about looking to the future, presenting a long-term, whole of government approach to supporting British business, giving them the confidence they need to invest, hire staff and grow. Long-term strategies are being developed in partnership with industry in key sectors.

3.The full list of sectors in which the government is developing a strategic partnership with industry is: Health and life sciences, aerospace, nuclear, oil and gas, offshore wind, information economy, agri-tech, education, construction, professional business services and automotive.

4.The government's economic policy objective is to achieve 'strong, sustainable and balanced growth that is more evenly shared across the country and between industries'. It set four ambitions in the 'Plan for Growth' (PDF 1.7MB), published at Budget 2011:

• to create the most competitive tax system in the G20
• to make the UK the best place in Europe to start, finance and grow a business
• to encourage investment and exports as a route to a more balanced economy
• to create a more educated workforce that is the most flexible in Europe.

Work is underway across government to achieve these ambitions, including progress on more than 250 measures as part of the Growth Review. Developing an Industrial Strategy gives new impetus to this work by providing businesses, investors and the public with more clarity about the long-term direction in which the government wants the economy to travel.