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You can find the current article at its original source at https://www.theguardian.com/money/2017/oct/12/may-energy-price-cap-ofgem-electricity-gas-tariffs
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| May's energy price cap will cover about two-thirds of households | May's energy price cap will cover about two-thirds of households |
| (35 minutes later) | |
| The energy bill of about two-thirds of households will be capped under draft legislation to be set out by the government on Thursday, as Theresa May vowed to fix what she called a “broken” market. | |
| The government revealed on Thursday that the cap will be an absolute rather than relative one, where the gap between a supplier’s cheapest and most expensive tariff is restricted. | The government revealed on Thursday that the cap will be an absolute rather than relative one, where the gap between a supplier’s cheapest and most expensive tariff is restricted. |
| It will apply to anyone on a standard variable tariff, the expensive plans that customers are moved to when cheaper, fixed deals end. | It will apply to anyone on a standard variable tariff, the expensive plans that customers are moved to when cheaper, fixed deals end. |
| Officials said that the ceiling on electricity and gas bills would last until the end of 2020, which is also the government’s deadline for when all homes should have been offered a smart meter, which enable new types of tariffs. | Officials said that the ceiling on electricity and gas bills would last until the end of 2020, which is also the government’s deadline for when all homes should have been offered a smart meter, which enable new types of tariffs. |
| Ministers confirmed that energy regulator Ofgem would be compelled to implement the cap once the law had given it new powers. Labour had previously raised doubts as to whether the legislation would force Ofgem to act, or simply empower it. | Ministers confirmed that energy regulator Ofgem would be compelled to implement the cap once the law had given it new powers. Labour had previously raised doubts as to whether the legislation would force Ofgem to act, or simply empower it. |
| “The bill would require Ofgem to consult and impose the cap as soon as practicable after the legislation is passed,” a government statement said. | “The bill would require Ofgem to consult and impose the cap as soon as practicable after the legislation is passed,” a government statement said. |
| “I have been clear that our broken energy market has to change – it has to offer fairer prices for millions of loyal customers who have been paying hundreds of pounds too much,” said May. | “I have been clear that our broken energy market has to change – it has to offer fairer prices for millions of loyal customers who have been paying hundreds of pounds too much,” said May. |
| “Today’s publication of draft legislation is a vital step towards fixing that, and in offering crucial peace of mind for ordinary working families all over the country.” | “Today’s publication of draft legislation is a vital step towards fixing that, and in offering crucial peace of mind for ordinary working families all over the country.” |
| However, Which?, a consumer group which had wholeheartedly welcomed a limited cap for 1 million people, said ministers needed to be careful the wider one did not backfire. | |
| Alex Neill, Which? managing director of home products and services, said: “For millions of consumers worried about their energy bills, a cap might sound like a positive move. However, the government must guard against any unintended consequences that undermine customer service and push up prices as a whole.” | Alex Neill, Which? managing director of home products and services, said: “For millions of consumers worried about their energy bills, a cap might sound like a positive move. However, the government must guard against any unintended consequences that undermine customer service and push up prices as a whole.” |
| One comparison site strongly condemned the government for pushing ahead with a wide-ranging cap. | |
| Richard Neudegg, head of regulation at uSwitch.com, said: “The proposal for a widespread price cap verges on negligence by the government. They are sending out completely the wrong message by suggesting that a price cap will improve the retail energy market.” | |
| The bill will be published about mid-morning on Thursday, with the business secretary, Greg Clark, due to to make a statement in the House of Commons. | The bill will be published about mid-morning on Thursday, with the business secretary, Greg Clark, due to to make a statement in the House of Commons. |
| The cap is not expected to take effect until winter 2018/19 at the earliest. | The cap is not expected to take effect until winter 2018/19 at the earliest. |