News that legislation to cap poor value energy tariffs and save consumers money has been introduced in Parliament has been welcomed by North Swindon MP Justin Tomlinson.
The Domestic Gas and Electricity (Tariff Cap) Bill will put in place a requirement on the independent regulator, Ofgem, to cap energy tariffs until 2020; guaranteeing protection for 11 million households on the highest energy tariffs.
Currently some consumers are paying up to £300 more than they need to, with customers of the big six energy suppliers losing out by around £1.4 billion a year. This new cap will help bring this overcharging under control & deliver fairer prices for consumers.
The cap will be in place until 2020, when Ofgem will advise the Government if it should remain in place until 2023.
The introduction of the Bill comes after an influential Parliamentary Select Committee scrutinised the proposals in detail, as part of the Government’s work to build consensus for the cap. The Government has also taken account of the Select Committee’s recommendation to add in safeguards to exempt green tariffs from the cap, so that where consumers make an active choice to opt for a green tariff, the cap benefits consumers and the environment.
Earlier this month, one million more vulnerable consumers who receive the Warm Home Discount were protected from higher bills with the extension of Ofgem’s safeguard tariff cap, introduced by the Conservative Government in 2017. There are now 5 million households protected by this cap, and the Government has also announced a new consultation to give Ofgem and DWP new powers to make it easier for vulnerable consumers to be protected from unfair energy bills.
Justin Tomlinson MP said: “These rip-off tariffs often affect elderly people, lower earners & those on fixed incomes. They leave people paying more than they have to and I am pleased that the Government is taking action against this so that millions of households will benefit.”
