Energy price cap plans revealed

collected by :Victor Alphen

As it stated in The Draft Domestic Gas and Electricity (Tariffs Cap) Bill will give energy regulator Ofgem the power to cap standard variable tariffs. However, the price cap is unlikely to take effect before winter. Tariffs for prepayment meters, which are already subject to a cap, as well as "green" energy tariffs, will be exempt from the proposed changes. The plan to cap energy charges was revived last week by Mrs May. The draft legislation will be scrutinised by a committee of MPs intended to build cross-party consensus on how the price cap will work.

Energy tariffs price cap legislation to be published

Draft legislation to introduce a price cap on "rip-off" energy tariffs is to be published by the Government today. Ofgem will bring in a cap on poor value standard variable or other default tariffs under the Draft Domestic Gas and Electricity (Tariffs Cap) Bill to help more than 18 million customer accounts in Great Britain. We will bring forward legislation to cap energy bills. "Today's publication of draft legislation is a vital step towards fixing that and in offering crucial peace of mind for ordinary working families all over the country."Business and Energy Secretary Greg Clark said: "The energy market is broken. "That is why we have published this draft legislation today – sending a clear message to suppliers they must act to put an end to loyal consumers being treated so unfairly."

Energy markets march higher as Government price cap looms

referring to Government's plan to cap household energy prices is set to steamroll ahead even as fresh data shows wholesale prices are on the rise and bills remain well below their 2014 peak. The political pressure furore around energy bills will reach fever pitch this week as ministers press ahead with controversial legislation to cap tariffs despite data which shows that energy bills are lower than they were when the threat of a market intervention first emerged. The cheapest standard dual-fuel energy deal on the market is just below £940 a year, according to the regulator's most recent data, well below the £1,100 a year paid in late 2013 when the Labour party vowed to cap rising prices. Since then a flood of almost 50 new entrants to the market has boosted switching between suppliers to record levels, helping to drive prices lower.