Thank you to those who have contacted me regarding the Conservative pledge to cap energy prices.
While I want the market to thrive and maintain the view that promoting competition is the best driver of value and service for customers, I am encouraged that the Government is prepared to act when markets are not working for all consumers.
The Government has published a draft Bill which will provide for Ofgem to set a cap, or 'safeguard tariff', on the Standard Variable Tariffs that 60 per cent of people are on. The Safeguard Tariff will be designed by Ofgem, who will be tasked with setting it at such a level that it still leaves considerable motivation for consumers to shop around for the best deal, but improves the terrible prices paid by some people.
More broadly, there is already a prepayment price cap in place protecting households least able to benefit from competition. In April 2017 a prepayment price cap came into force protecting over four million households using pre-payment meters. This will remain in place until the end of 2020 and will save the average household £80 a year.
I shall continue to look at the actions of government on this matter and will encourage them to make the financial burden of energy less for my constituents.
