Government to introduce Bill to cap energy prices for millions

Legislation designed to cap energy prices for 11 million households across Britain will be introduced to parliament today.

The Domestic Gas and Electricity (Tariff Cap) Bill would allow Ofgem to limit tariffs until 2020, with the option to extend the cap annually until 2023.

Prime Minister Theresa May said that the Bill, which the Government hopes will become law before next winter, would “force energy companies to change their ways”.

A 2016 report found consumers were paying £1.4 billion a year over the odds via energy companies’ standard variable tariffs (SVTs).

Announcing the Bill, Mrs May said: “It’s often older people or those on low incomes who are stuck on rip-off energy tariffs, so today we are introducing legislation to force energy companies to change their ways.

“Our energy price cap will cut bills for millions of families.

“This is another step we are taking to help people make ends meet as we build a country that works for everyone.”

The idea of energy price freezes was floated by thenLabour leader Ed Miliband in 2013 amid concerns over price hikes, and was criticised by Conservatives at the time.

Gillian Guy, chief executive of Citizens Advice, said the Bill was “a significant step towards an energy market that works for everyone”.

She added: “Millions of loyal energy customers have been ripped off by their suppliers for too long.

“It’s essential that protections from overcharging remain in place for vulnerable energy customers after the cap is lifted.”