Households could pay more for energy with fewer tariffs The Government yesterday said households would automatically get the cheapest deals available, but consumer groups and businesses claimed firms would simply scrap their best tariffs. Ministers insist the plans will help families with the cost of living, as the best energy rates are currently £300 a year cheaper than the most expensive. Under the reforms, energy companies will be forced to switch anyone paying more than their new four core tariffs to a cheaper deal by the summer of 2014. Households will be able to choose between a standard rate, a fixed rate and two other types, such as a green tariff. Greg Barker, the climate change minister, said the proposals would make a significant difference to households. "The Prime Minister promised to take action to get people the lowest tariffs and he has delivered," he said. Ed Davey, the Energy Secretary, told MPs on the Commons energy committee: "I think many people will end up paying less, because this will both make it easier for them to choose what is best for them and I think it will drive competition, and therefore reduce prices. I can't guarantee every single person will end up paying less but I think this is a really good deal for people across the country. But Corin Taylor, an economist at the Institute of Directors, said the reforms "miss the point." "Clumsy regulation restricting choice would simply allow energy companies to increase their lowest tariff, ensuring a higher minimum price for consumers," he said. The unspoken factor is that the Government's own energy policies add a large chunk to everyone's electricity and gas bills - feeding the fire which they claim to be putting out. Adam Scorer, a director of policy at Consumer Focus, also warned of "unintended consequences and in particular a general levelling up of prices." "Ofgem will need to police the behaviour of suppliers and be vigilant about the level of margins that suppliers take from their remaining tariffs," he said. Angela Knight, the head of the industry group Energy UK, which represents British Gas, npower, E.ON, Scottish Power, SSE and EDF, said there was a "risk" that the best offers would disappear as a result of the plans. Energy bills are at a near record high of more than £1,300 a year per household, as a result of rising gas prices. The average dual gas and electricity bill has more than doubled over the past decade.