18 million energy customers to see bills capped by government

18 million energy customers to see bills capped by government

The draft bill published on Thursday said the price cap would initially last until 2020, with the potential to be extended by up to three years if needed.

The government said in a statement, however, before full draft legislation due later this morning: "The need for it would be kept under review, and extensions could be made, on the advice of Ofgem, up to the end of 2023 at the latest".

"I have been clear that our broken energy market has to change - it has to offer fairer prices for millions of loyal customers who have been paying hundreds of pounds too much", said May.

But after 192 MPs of all parties wrote to the PM in September complaining that poorer customers were being preyed on by energy firms, Mrs May revived the plan and backed a price cap in her recent Tory conference speech.

But, it gave no precise detail for businesses keen to see how much it would cost them, other than to say it would be an absolute price cap, as opposed to a relative one based on the difference between the cheapest and most expensive tariff.

Ofgem said it would now consult the industry on its safeguard tariff for SVTs while the government's draft bill passes through parliament, and said suppliers in the meantime must step up efforts to provide better value deals.

The energy regulator Ofgem has announced it will extend its price cap to one million more vulnerable households this winter.

California wildfires toll reaches 23
At least 23 people have been killed in more than 16 wildfires that continue to burn across Northern California. Manned roadblocks were set up between Sonoma and devastated areas of Santa Rosa.

She said: "Due to the Government's dithering, the four million households in fuel poverty - nearly one million of which includes a disabled person - will face another winter of cold homes and astronomical bills".

Business and Energy Secretary Greg Clark said: "The energy market is broken. As it will take some time to come into effect, customers sitting on expensive standard variable tariffs should switch now". It's great that we're moving on to think about how, rather than if, we make it happen. "An absolute cap would throttle competition, be out of date as soon as the wholesale price of gas goes up or down, and energy firms would spend more time lunching their regulators than delighting their customers".

The regulator is also working on plans to extend its price protection plan to a further 2 million vulnerable households by next winter, but Nolan said this would be dependent on the timing of the government's legislation.

Britain's energy market is dominated by the so-called big six providers - Centrica's British Gas, SSE, Iberdrola's Scottish Power, Innogy's npower, E.ON and EDF Energy, which account for about 85 percent of the retail electricity market.

What is a standard variable tariff?

Customers are still likely to be better off by searching and switching themselves.

Ofgem had already proposed intervening in the part of the market that supplies more vulnerable customers.

Related Articles

  • Woman, 100, Tied in Deadly Home Invasion Escapes, Calls Cops

    Woman, 100, Tied in Deadly Home Invasion Escapes, Calls Cops

    Officials say the 100-year-old was treated on the scene for superficial marks around her legs consistent with being tied up. Karlene Gross, the couple's niece, told NBC4 that she learned of her uncle's death while watching the local news.
    Irish court gives $1 billion Apple data center green light

    Irish court gives $1 billion Apple data center green light

    Objectors are likely to appeal the court's decision, meaning it could end up in the Supreme Court. The objectors' main concern was the poor environmental impact assessment carried out by Apple.

    Taika Waititi has Jimmy Kimmel interview crashed by Matt Damon

    Both Hemsworth and Damon were seen hours later on the red carpet for " Thor: Ragnorak". "You're not on the show", Kimmel told him. Damon has since tried to clear up the issue , sitting down with Deadline to explain his side of the story.
  • Stunned US face major questions after World Cup debacle

    Stunned US face major questions after World Cup debacle

    The U.S. needed only to tie Trinidad and Tobago , the world's 99th-ranked team, to qualify for its eighth consecutive World Cup. He said it was not the fault of Jurgen Klinsmann, head coach from 2011 through 2016, or Bruce Arena who took over from him.
    Swiss open corruption probe against PSG's Al-Khelaifi and ex-FIFA executive

    Swiss open corruption probe against PSG's Al-Khelaifi and ex-FIFA executive

    Valcke is now serving a 10-year suspension for his alleged involvement in a scheme to profit from World Cup ticket sales.

    Germany: 'No evidence' Russian Federation used Kaspersky software to spy on US

    The software is made by Kaspersky Lab, a Moscow firm that is under scrutiny amid allegations of aiding Kremlin-backed espionage. The Washington Post had also reported that the Israeli spies discovered hacking tools that could only originated from the U.S.
  • PNP, NBI welcome PDEA lead in drug war

    PNP, NBI welcome PDEA lead in drug war

    The second phase of the anti-illegal drugs campaign was launched in October 2016. Police waged an all-out war against illegal drugs upon Duterte's orders.
    Samsung Releases Star Wars Edition Styled Robot Vacuum Cleaner

    Samsung Releases Star Wars Edition Styled Robot Vacuum Cleaner

    This means from a smartphone you can start or stop the machine, schedule cleaning times, and check the cleaning history. You can control them via an app or with Alexa voice commands, but what sets these hoovers apart is their sound effects.
    Trump says Puerto Rico can't get aid 'forever'

    Trump says Puerto Rico can't get aid 'forever'

    We call for an expansive "Marshall Plan" like approach for Puerto Rico's recovery and reconstruction. Puerto Rico didn't take a credit card and go out and buy big screen TVs or pave their roads in gold.
  • Auto  once used by Kejriwal stolen; AAP slams LG

    Auto once used by Kejriwal stolen; AAP slams LG

    He added, "The investigation has just started and we will be able to get more details in the further course of time". Kejriwal's " aam aadmi " image, was being used by an AAP functionary these days.
    Police Seek Person Of Interest, Missing Child In Ohio Death Investigation

    Police Seek Person Of Interest, Missing Child In Ohio Death Investigation

    Deputies found the bodies of three adults in a house trailer in an unincorporated area of Lawrence County at about 7:30 p.m. An endangered child advisory for a missing 8-year-old has been cancelled following a deadly shooting in southern Ohio.

    Analysts See $0.71 EPS for Pilgrim's Pride Corporation (PPC)

    Shares of CBS Corporation (NYSE:CBS) traded down -0.65% in the last session while performance was up 57.92% in the last five days. The stock of Flexion Therapeutics Inc (NASDAQ:FLXN) earned "Outperform" rating by BMO Capital Markets on Wednesday, June 29.