Consumers are one step closer to cheaper energy bills as legislation to cap poor value energy tariffs completed its passage through Parliament yesterday (18 July 2018)
The Domestic Gas and Electricity (Tariff Cap) Bill will put in place a requirement on the energy regulator, Ofgem, to cap standard variable and default energy tariffs.
The cap will tackle the amount consumers have been overpaying the Big Six energy suppliers, which the Competition and Markets Authority (CMA) found to be an average of £1.4 billion a year. Some consumers could save up to £350 a year on gas and electricity bills by switching suppliers.
The government also announced today that its flagship £6 billion home energy efficiency scheme will be entirely focused on upgrading over 1 million low income and vulnerable households for the next 3 and a half years.
The Energy Company Obligation scheme, which requires energy companies to supply heating and energy efficiency measures, will be entirely focused on households in or at risk of fuel poverty while being expanded so that more companies will be included.
Prime Minister Theresa May said: “For far too long older people, hard-working 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 and Clean Growth Minister Claire Perry said: “This government is committed to building an energy market that works for all while delivering clean, affordable energy. This cap coupled with our £6 billion energy efficiency scheme will help build a market that puts consumers at its heart and ensures that those most at risk of fuel poverty are protected. Energy suppliers now need to get on board, ditch their old practices and improve their efforts to deliver value, choice and excellent customer service.”
