Rebecca Harris MP has welcomed news this week, that the Government has introduced new legislation to cap poor value energy tariffs and save consumers money in time for next winter.
The Domestic Gas and Electricity (Tariff Cap) Bill will put in place a requirement on the independent regulator, Ofgem, to cap energy tariffs until 2020. It will mean an absolute cap can be set on poor value tariffs, protecting the 11 million households in England, Wales and Scotland who are currently on a standard variable or other default energy tariff and who are not protected by existing price caps.
Rebecca Harris MP said: “As Co-Chair of the All Party Parliamentary Group on Fuel Poverty for several years, I know it’s too often elderly people or those on low incomes who can suffer from rip-off energy tariffs, I’m glad the Government is introducing legislation to force energy companies to change their ways. This move will guarantee protection for the millions of households currently on the highest energy tariffs and will help many families in Castle Point. Currently some consumers are paying up to £300 more than they need to – this cap will help bring this overcharging under control.”
The Bill is part of a package of measures being introduced by the Government to increase competition in the retail energy market and lower prices for consumers, including the rollout of smart meters in every household and initiatives to promote smarter and faster switching. The Government intends that Ofgem implements the cap as soon as possible so that customers get the protection they need by next winter.
Business and Energy Secretary Greg Clark said: “Energy prices for millions of households on default tariffs are still too high. Our new price cap will guarantee that consumers are protected from poor value tariffs and further bring down the £1.4 billion a year consumers have been overpaying.”