May vows to put heat on energy suppliers

A CAP on energy bills to save the average family around £ 100 a year is to be a key policy in the Tory manifesto, a senior party source said yesterday.

The proposal will set a maximum limit for gas and electricity charges for the seven out of 10 households on standard variable tariffs.

Theresa May agreed the policy to attract voters in Labour’s traditional working- class heartlands.

If she wins on June 8, she will order the energy regulator Ofgem to set a maximum price that gas and electricity firms can charge.

The figure would vary between different regions.

Fairer

Work and Pensions Secretary Damien Green said: “We will be introducing a cap on overly expensive and unfair standard energy tariffs to ensure ordinary working families are getting a fairer deal.”

A similar limit was introduced earlier this month for households with pre- payment meters.

A Competition and Markets Authority report last year said customers were overpaying by £ 1.4billion annually.

Mrs May decided to intervene after five of the so- called “big six” energy firms recently announced price rises.

Mr Green yesterday confirmed the policy would be in his party’s manifesto, due to be published on May 8.

He said: “People feel some of the big energy companies have taken advantage of them.”