Theresa May revives plan to cap energy prices
The idea was promised in the Conservative’s election manifesto, but there was no mention of it in June’s Queen’s Speech.
The full details will be published in a draft Parliamentary bill next week.
However, many in the industry were critical of her announcement. The CBI said it was “not the best answer”.
At one stage, shares in Centrica, the parent company of British Gas, fell by more than 6% on the news.
The cap is likely to apply to everyone who is currently on a standard variable tariff (SVT). Such rates have been criticised as being more expensive than fixed-term contracts.
Mrs May told the Tory party conference in Manchester that Britain’s energy market was broken and needed to be fixed.
“The energy market punishes loyalty with higher prices, and the most loyal customers are often those with lower incomes, the elderly, people with lower qualifications and people who rent their homes,” she said.