UK bill to tackle energy costs

By Talia Shadwell and Ben Woods

Legislation designed to cap “poor-value” energy tariffs for 11m British households will be introduced, the UK Government has announced.

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 £1.4bn (€1.59bn) a year over the odds via energy companies’ standard variable tariffs.

Ms 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 then-Labour leader Ed Miliband in 2013 amid concerns over price hikes, and was criticised by Conservatives

at the time

.

Plans for a universal price cap were announced in the Conservative manifesto last year, but after the election Ms May passed responsibility to Ofgem, which faced criticism for only coming up with proposals to protect the most vulnerable. Frustrated by the lack of progress from the regulator, Ms May announced legislation to rein in “rip-off” bills in her speech to the Tory conference in October.

Press Association