Competition warning over Cameron pledge

Consumers in debt or struggling in other ways with their finances may find it difficult to pay their energy bills as prices go up, but a solution suggested by the prime minister has been criticised as likely to backfire.

Price comparison site uSwitch responded negatively to a pledge by David Cameron that he will legislate to make energy firms give consumers the cheapest tariff available.

Director of policy at the site Ann Robinson said the prime minister would be mistaken if he did this, as he would inadvertently "kill competition".

She added: "Consumers will be left with Hobson's choice – there will be no spur, no choice, no innovation and no reason for consumers to engage any more."

The only competition that might be left would be small providers offering better deals than the big six.

Mr Cameron made the pledge during Prime Minister's Questions, saying the policy of encouraging consumers to switch had not brought bills down.

Posted by Paul Thacker