North Swindon MP Justin Tomlinson has welcomed the news that legislation to cap poor value energy tariffs for consumers has been passed by Parliament; marking another step closer to cheaper energy bills.
The Domestic Gas and Electricity (Tariff Cap) Act will put in place a requirement on the energy regulator, Ofgem, to cap energy tariffs and fulfils a Conservative manifesto commitment made last year.
The legislation was introduced with the aim of tackling the amount consumers have been overpaying to the Big Six energy suppliers. The Competition and Markets Authority (CMA) found the total value of this overpayment has been an average of £1.4 billion a year, with many consumers being able to save up to £350 a year by switching suppliers.
This energy price cap will be in place by the winter in order to protect millions of households from unfair price rises at the time it will be felt the most.
The new legislation comes alongside the the Government’s new energy scheme to help support more low income and vulnerable customers. This scheme is worth £6 billion, helping upgrade over one million homes over the next three and a half years. Those in or at risk of fuel poverty will also be protected as companies take action to ensure energy efficiency.
All of this comes as a part of the Government’s objective of clean, affordable and efficient energy – a key feature of the modern Industrial Strategy. The recent rollout of smart meters and initiatives to help make switching energy companies easier are also a part of this.
Justin Tomlinson MP said: “I am very pleased that another important feature of our reforms the energy market has now passed and will help consumers. Alongside our record investment in new renewable energy and improving efficiency through smart meters, this new legislation will help tackle poor value energy tariffs and end excessive increases in bills.”
Prime Minister Theresa May said: “For far too long older people, hard-working families and those on low incomes have been subject to rip-off energy tariffs. Our energy price cap will protect households from unfair price rises in time for this winter when people can feel the pinch more acutely. We know that the cost of living is still a challenge for some families and today marks an important step in helping people to keep more money in their pockets.”