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| General election 2017: Tories to pledge energy bill cap | General election 2017: Tories to pledge energy bill cap |
| (35 minutes later) | |
| A cap on household energy bills is set to be included in the Conservative manifesto, a cabinet minister has said. | A cap on household energy bills is set to be included in the Conservative manifesto, a cabinet minister has said. |
| According to the Sunday Times the plans could cut gas and electricity costs by £100 a year for 17 million families. | According to the Sunday Times the plans could cut gas and electricity costs by £100 a year for 17 million families. |
| Work and Pensions Secretary Damian Green told ITV people felt "taken advantage of" by energy firms. | Work and Pensions Secretary Damian Green told ITV people felt "taken advantage of" by energy firms. |
| Labour said the plan should be taken with "a pinch of salt", while price comparison company uSwitch said it would "do more harm than good". | Labour said the plan should be taken with "a pinch of salt", while price comparison company uSwitch said it would "do more harm than good". |
| The manifesto pledge would outline plans to cap bills for seven out of 10 households paying standard variable tariffs, which are often criticised as bad deals for consumers by industry watchdogs. | The manifesto pledge would outline plans to cap bills for seven out of 10 households paying standard variable tariffs, which are often criticised as bad deals for consumers by industry watchdogs. |
| It follows the introduction of a cap for households using pre-payment meters early this month, after the Competition and Markets Authority released a report saying customers were overpaying by £1.4bn. | It follows the introduction of a cap for households using pre-payment meters early this month, after the Competition and Markets Authority released a report saying customers were overpaying by £1.4bn. |
| Mr Green told the Peston on Sunday programme: "There will be a lot about energy policy in the manifesto [and] obviously there will be more detail. | Mr Green told the Peston on Sunday programme: "There will be a lot about energy policy in the manifesto [and] obviously there will be more detail. |
| "But... I think that people feel that some of the big energy companies have taken advantage of them with the tariffs they have got." | "But... I think that people feel that some of the big energy companies have taken advantage of them with the tariffs they have got." |
| Mr Green said his party's promise on energy was not the same as Labour's 2015 election pledge to freeze gas and electricity bills for every home and business in the UK for 20 months. | Mr Green said his party's promise on energy was not the same as Labour's 2015 election pledge to freeze gas and electricity bills for every home and business in the UK for 20 months. |
| "We would have [energy regulator] Ofgem setting the limits," he said. "So it would be a cap, it would be more flexible, it would be able to reflect market conditions [and] the market would still have an influence. | "We would have [energy regulator] Ofgem setting the limits," he said. "So it would be a cap, it would be more flexible, it would be able to reflect market conditions [and] the market would still have an influence. |
| "That would mean in practical terms that if the oil price fell again, then consumers would benefit, which they wouldn't have done under [former Labour leader] Ed Miliband's proposal." | "That would mean in practical terms that if the oil price fell again, then consumers would benefit, which they wouldn't have done under [former Labour leader] Ed Miliband's proposal." |
| Mr Miliband responded on Twitter saying: "Where were these people for [the] last four years since I proposed [a] cap?" he wrote. "Defending a broken energy market that ripped people off. Let's see [the] small print." | |
| 'Broken promises' | 'Broken promises' |
| Labour has not come out against the proposals but told voters energy bills had "soared" under a Conservative government. | Labour has not come out against the proposals but told voters energy bills had "soared" under a Conservative government. |
| Mr Gwynne, the national elections and campaign coordinator in the shadow cabinet, said: "Time and again [the Tories] promised action, but when it comes to it, they broke those promises. | Mr Gwynne, the national elections and campaign coordinator in the shadow cabinet, said: "Time and again [the Tories] promised action, but when it comes to it, they broke those promises. |
| "At the last election when Labour promised action, the Tories opposed it, putting themselves on the side of protecting the big energy companies' profits rather than the interests of working people. | "At the last election when Labour promised action, the Tories opposed it, putting themselves on the side of protecting the big energy companies' profits rather than the interests of working people. |
| "Only Labour can be trusted to deliver a country for the many rather than just the few." | "Only Labour can be trusted to deliver a country for the many rather than just the few." |
| 'Paying extra for being loyal' | 'Paying extra for being loyal' |
| Citizens Advice has released figures on how standard variable tariffs for energy bills affect people in the UK: | Citizens Advice has released figures on how standard variable tariffs for energy bills affect people in the UK: |
| SOURCE: Citizens Advice | SOURCE: Citizens Advice |
| Co-leader of the Green Party Jonathan Bartley said the policy did not go far enough and he wanted more local choices of supplier for consumers. | Co-leader of the Green Party Jonathan Bartley said the policy did not go far enough and he wanted more local choices of supplier for consumers. |
| "We don't just want the big six energy companies, we want 6,000," he said. "We want a community renewable energy revolution. | "We don't just want the big six energy companies, we want 6,000," he said. "We want a community renewable energy revolution. |
| "We want that control going down to local communities, so they can invest and get a return on their investment to have clean energy projects in their local area, have control of that energy supply and get that cheap, clean energy there." | "We want that control going down to local communities, so they can invest and get a return on their investment to have clean energy projects in their local area, have control of that energy supply and get that cheap, clean energy there." |
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| Conversely, industry leaders have criticised the Conservatives' plan for going too far. | Conversely, industry leaders have criticised the Conservatives' plan for going too far. |
| Richard Neudegg, head of regulation at uSwitch.com, said previous market interventions had led to lower switching rates and higher prices for consumers. | Richard Neudegg, head of regulation at uSwitch.com, said previous market interventions had led to lower switching rates and higher prices for consumers. |
| "A price cap would be the death knell for competition," he said. "It would remove any incentive for energy companies to drive down prices and fight to keep their customers, entrenching the position of the incumbent big six. | "A price cap would be the death knell for competition," he said. "It would remove any incentive for energy companies to drive down prices and fight to keep their customers, entrenching the position of the incumbent big six. |
| "[And] it would create a false sense of security for consumers on poor value standard variable tariffs, reducing the chance of them seeking a cheaper deal." | "[And] it would create a false sense of security for consumers on poor value standard variable tariffs, reducing the chance of them seeking a cheaper deal." |
| Iain Conn, the chief executive of British Gas parent company Centrica, agreed that a highly competitive market was the best outcome for consumers. | Iain Conn, the chief executive of British Gas parent company Centrica, agreed that a highly competitive market was the best outcome for consumers. |
| He said: "Price regulation will result in reduced competition and choice, stifle innovation and potentially impact customer service. | He said: "Price regulation will result in reduced competition and choice, stifle innovation and potentially impact customer service. |
| "We are committed to more competitive pricing, improved service, rewarding loyalty and delivering propositions which customers want." | "We are committed to more competitive pricing, improved service, rewarding loyalty and delivering propositions which customers want." |
| Spokesmen from EDF, Npower and E.ON said they would not comment until they saw the detail of the policy in the manifesto, but the latter did give its support to a "competitive market". |