May borrows from Miliband as she promises to cap energy bills
THERESA MAY will today pledge to cap energy bills to “protect ordinary working families” in a controversial move.
She will protect households from unjustified rises in their energy bills if a Tory government is elected on June 8.
But the move is expected to provoke anger from Labour who will say the Tories strongly criticised a similar policy promoted by Ed Miliband in 2015.
Mrs May will say a cap on unfair standard energy tariffs will ensure ordinary working families are getting a fairer deal. She will today say it is a plan to build a stronger Britain as we leave the EU – and a more secure future for families across the country.
She will say this is the “positive difference that only strong and stable leadership can make”.
Over half of British households are on poor-value energy deals. Prices have risen more than 150 per cent over the last 15 years, with families finding more and more of their take-home pay going on energy bills.
Five of the so-called Big Six have announced price rises on their already poor-value standard tariffs in recent months, after a Government-backed investigation found households are paying around £1.4bn more a year than they need to.
The proposed cap would be aimed at poor-value default tariffs – so-called standard variable tariffs – which most households are on. It would be set by Ofgem, the independent energy regulator.
Centrica has hit out at a Government proposal to cap energy prices, warning that it could lead to higher bills in the long run.
BRITISH GAS owner Centrica has hit out at a Government proposal to cap energy prices, warning that it could lead to higher bills for consumers and reduce competition.
The energy giant said that it has had regular dialogue with ministers and proposed “alternative ways” to improve the market and address concerns without resorting to price regulation. In a trading update, the firm 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.
“We have had a regular and constructive dialogue with the Government and have proposed alternative ways to improve the market further and address their concerns, without resorting to price regulation.”
Centrica said that it is “wellpositioned” to deal with whatever form of market change is ultimately enacted. Chief executive Iain Conn has previously warned that the proposed price cap could turn the group into a loss-making business.
The energy industry was left reeling in April after Work and Pensions Secretary Damian Green confirmed that the Government will cap energy prices if it wins the General Election in June.
The Tory manifesto is expected to include a promise to cut around £100 from energy bills by capping prices for the seven out of 10 households on standard variable tariffs.
In the market update, Centrica said that trading in the first quarter was hit by warmer-than-usual weather, leading to lower-than-planned energy consumption.
The group said it lost 261,000 customers in the period, confirmed that it will slash a further £250m in costs and said that it is on track to axe 1,500 jobs this year. Mr Conn will also face down shareholders at Centrica’s AGM on Monday.
It comes after the chief executive’s pay packet was boosted by around 40 per cent to £4.1m last year.