Theresa May was under pressure last night to honour her pledge to cap energy prices for 17 million families after the regulator published proposals for a watered-down version that would protect just two million households. Ofgem’s plans are a “betrayal” of millions of people whose bills Mrs May promised to limit, according to John Penrose, a Conservative MP who backed Labour in urging the government to go further. The prime minister said in May that the Tories would protect “around 17 million families on standard variable tariffs” by introducing a price cap, which she said would save them up to £100 a year. The Conservative manifesto weakened the pledge, promising only to extend an existing cap for the four million homes with pre-payment meters to “more customers”. After the election, the government passed responsibility for implementing the plan to Ofgem, which yesterday said that it was considering extending the cap to only two million households that were deemed to be “vulnerable”.
Times 4th July 2017 read more »
A price cap on energy bills could be extended to many more households on low incomes, under plans being considered by regulator Ofgem. A limit on the cost of gas and electricity for those on pre-payment meters already saves about four million people £80 a year. This could be extended to about two million others on certain benefits. The proposals come after a much wider cap in the Conservative manifesto was absent from the Queen’s Speech.
BBC 3rd July 2017 read more »
A pledge by Theresa May, UK prime minister, to knock £100 off energy bills for 17m households has been watered down after the energy market regulator announced a price cap to protect only 2.2m “vulnerable” customers. Ofgem proposed a “safeguard tariff” for households on low incomes on Monday as part of a package of reforms designed to address concerns about soaring domestic energy bills. The regulator has not detailed which customers would be affected by the safeguard tariff, but Dermot Nolan, chief executive of Ofgem, suggested it would include the 2.2m customers who are currently eligible for a “warm home discount” – an existing scheme that entitles households on low incomes to £140 off their electricity bill. More than 4m households that use pre-payment meters are already protected under a cap introduced in April.
FT 3rd July 2017 read more »