The Conservative Government is introducing legislation to cap energy prices and cut bills for millions of families helping them make ends meet.
The Domestic Gas and Electricity (Tariff Cap) Bill will cap prices until 2020 with the option to extend the cap annually until 2023.
- Overcharging costs consumers on poor-value standard variable tariffs £1.4 billion every year with some families paying £300 more than they need to. These charges often effect older people or those on low incomes most significantly.
- The new cap should be in place in time for next winter, helping to protect the 11 million bill-payers currently on the highest energy tariffs and that’s on top of the five million vulnerable people whose bills are already capped.
- This Bill is part of variety of measures that we are taking to bring down the cost of energy including increasing competition in the market, making it quicker and easier to change supplier and rolling out smart meters in every household.
We recognise that balancing the household budget is tough enough without rip off energy prices and that is why we are taking action to make sure energy companies change their ways. This Government is on the side of hard working people and we are determined to build a society that works for everyone.