Energy price cap could lead to fraud, bosses warn

ENERGY firms fear that plans to set a price cap for at least two million poorer households could lead to widespread fraud unless the Government agrees to share information to help identify vulnerable customers.

Regulator Ofgem is expected to unveil plans for a price cap later this month to come into force in January.

This would be a more modest proposal than Theresa May’s pre-election promise to cut the price of energy by £100 for 17million households. And it is not yet clear how Ofgem’s new idea will work.

Vulnerable consumers are currently eligible for a range of assistance schemes – some are paid to them directly, such as the Cold Weather Payment.

But the Department for Work and Pensions has previously refused to help energy firms identify which consumers might need assistance.

One senior energy industry executive said: ‘There are 1.25million pensioners in the core group, then there are another 900,000 people who we think are likely to be described as vulnerable.

‘But many people who should apply for help don’t do so and each company defines its vulnerable customers in a different way.

‘So we need some definitive information from the DWP on this. Otherwise it could open it up to huge amounts of fraud which would mean the money not going to the right people.’

Ofgem said it is discussing with the DWP how information might be made available.