Energy Secretary Ed Davey will today unveil ambitious plans to cut bills by helping smaller firms take over almost a third of the energy supply market.
He will hail an eight-fold increase in consumers using independent firms since the coalition took office, and say he wants to go further to dilute the dominance of the so-called “big six” companies.
The soaring cost of household energy bills has become a major political issue in recent years, with Labour having pledged to deliver a price freeze if elected in May.
In his keynote speech to the Liberal Democrat conference in Glasgow today, Mr Davey will say plans to make it easier for customers to switch provider are ahead of schedule.
The energy secretary will also set a target of having 30% of power supplied by smaller firms by the end of the decade.
Independent companies have increased their share of the market from 1% to almost 8% since the coalition came to power, with two million customers now getting their power from firms outside the big six.
Mr Davey will say: “We’re succeeding because we are outsiders, without vested interests.
“To begin the big shift from fossil fuels. To take on the big six energy firms Labour left Britain with. To win in Europe and the UN for ambitious climate change.
“That’s why I can announce today that I am delivering on my promise to halve switching times this year.
“Every major energy firm is on schedule to deliver the faster switching I have demanded.”
He will add that he is “proud” that energy independents were now supplying nearly eight times as many people as they were under Labour.
“I want to see their market share grow more – to 30% or more by the end of the decade,” Mr Davey will tell delegates.
“That will mean lower energy bills and better customer service for people across Britain.”
He will also announce that householders in England and Wales are to be offered an additional £100 million to fund energy-saving home improvements, after a UK Government scheme proved so popular it ran out of cash within three months.
The minister is expected to confirm Lib Dem plans, set out in last month’s pre-manifesto, to offer households a £100-a-year government-funded council tax discount over the next 10 years if they improve the energy efficiency of their homes.