The Courier & Advertiser (Fife Edition)
Energy price cap will help 12 million
The energy price cap will make a “real difference” to the 12 million people stuck on the most expensive tariffs, a consumer group has said.
Regulator Ofgem is set to be handed new statutory powers – dubbed a “nuclear deterrent” – to end inflated prices.
The Domestic Gas and Electricity (Tariff Cap) Bill will put in place a requirement on Ofgem to cap standard variable and default energy tariffs until at least 2020 to tackle the amount consumers have been overpaying the Big Six energy suppliers, which the Competition and Markets Authority has put at £1.4 billion a year.
The Bill enables the temporary price cap to remain in place until 2023 if conditions for effective market competition are not met.
The new legislation should be operating next winter after receiving parliamentary approval.
Prime Minister Theresa May said: “For far too long, older people, hardworking families and those on low incomes have been subject to rip-off energy tariffs. Our energy price cap will protect households from unfair price rises in time for this winter when people can feel the pinch more acutely.
“We know that the cost of living is still a challenge for some families and today marks an important step in helping people to keep more money in their pockets.”
Energy Secretary Greg Clark said: “This Bill, which delivers on our manifesto promise, is a necessary intervention to protect millions of energy customers who have been stuck on poor value deals and hit by unjustified price rises for far too long.
“Switching will always save people money, but that doesn’t mean that customers should be punished for their loyalty.”
Citizens Advice chief executive Gillian Guy said: “Capping prices for 12 million people stuck on standard variable tariffs will stop firms overcharging customers who don’t or can’t switch supplier.
However, comparison site MoneySuperMarket said its survey of 2,000 households last week found that just 21% of bill-payers believed the cap would save them money.