Theresa May plans energy price cap to force firms to ‘change their ways’

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 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 0 Theresa May: ‘Price cap will cut energy bills for millions’ 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.

Mrs May announced legislation to rein in “rip-off” bills in her speech to the Tory conference in October after becoming frustrated by the lack of progress from Ofgem.