MAY WILL CUT ENERGY BILLS FOR MILLIONS

PM’s manifesto vow to cap prices and save families average of £100

THERESA may last night pledged to cap rip-off energy prices in a move expected to cut £100 from a typical bill.

In the first major policy announcement of the Conservative campaign, the Prime Minister said her manifesto would include a pledge to limit the standard tariffs paid by seven in ten families.

The regulator Ofgem would be given powers to set maximum prices, making it harder for energy firms to punish loyal customers.

Ofgem would review the market twice a year, keeping the cap in line with wholesale energy prices and stopping firms making excess profits. Around 17million families on standard variable tariffs could benefit by up to £100 a year, according to Tory sources.

however some Conservatives question whether a government should fix energy prices. Tory MPs savaged former Labour leader ed Miliband’s plan for a cap in the 2015 election campaign.

Power firms have warned that competition could be stifled, raising prices in the long run. The manifesto move came as:

Mrs May brushed aside Cabinet doubts to

say her party would retain a pledge to slash net migration to the tens of thousands;

Jeremy Corbyn prepared for the most Left-wing campaign in modern Labour history, promising a ‘reckoning’ with the rich;

Vince Cable encouraged fellow Lib Dems to back Labour in some seats to beat the Conservatives;

Mrs May urged voters to give her a strong mandate to take on France’s new president Emmanuel Macron, a Europhile who has described Brexit as a crime;

An opinion poll gave the Tories a huge 22-point lead over Labour.

Mrs May hinted at the move on energy bills yesterday, telling activists she would pursue ‘deliverable’ policies.

She said these would include protecting workers’ pensions against irresponsible bosses and capping energy prices.

Greg Clark, whose brief as Business Secretary covers the energy market, confirmed the price cap proposal last night.

‘We will act on our commitment to intervene when the energy market fails to treat people in a fair and reasonable manner,’ he said. ‘A recent investigation found that families are paying £1.4billion more than they should in energy bills.

‘And in the past few months, five of the largest energy suppliers have announced increases to their already poor value standard tariffs. This clearly isn’t fair and reasonable and we are going to put it right.’

Ofgem moved last month to cap prices for four million mainly poorer customers who use pre-payment meters.

Energy giants have been accused of ripping off their most loyal customers by leaving them on expensive tariffs that are far costlier than their best deals.

A review by Ofgem last year found the difference between some suppliers’ best and worst deals was worth £300 a year to the average family. An investigation by the Competition and Markets Authority said firms were able to exploit customers who did not regularly switch.

Critics have accused fuel companies of trying to cash in by raising bills dramatically since Mrs May first threatened to take action against the industry in October. SSE’s cheapest gas and electric deal has gone up 37 per cent to £1,072 a year, according to the comparison site Uswitch.

Yesterday British gas owner Centrica said: ‘Centrica does not believe in any form of price regulation. Evidence from other countries would suggest this will lead to reduced competition and choice, and potentially higher average prices.’

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