The energy price cap could be extended beyond 2023 under proposed legislation expected to be unveiled today. The controversial policy was introduced in 2019 to limit prices for 15 million households on default tariffs and has squeezed big suppliers’ profits. Existing legislation gives ministers the option of extending the cap each year until the end of 2023 at the latest if “conditions are not yet in place for effective competition” in the market. The Times understands that the government wants the option of continuing the cap beyond then, while it tests collective switching schemes that it believes could boost competition. Customers on default tariffs could be switched automatically to cheaper tariffs or different suppliers unless they opt out, under “small-scale” trials that could take place from 2024. The government is also expected to propose more extensive “opt-in” switching, under which customers would receive personalised advice about better deals.
Times 23rd July 2021 read more »