Energy campaigner and Don Valley MP Caroline Flint has welcomed the Ofgem announcement that the energy price cap will be in force by end of 2018, saving Don Valley residents an average of £75 on their energy bills.
Said Caroline: “Ofgem have worked quickly to do what Parliament demanded and propose a comprehensive cap on expensive tariffs. I hope this comes into force without further objections or any legal challenges by the Big Six, especially before the winter months hit.
“Tackling over-charging by the Big Six has taken far too long. Labour highlighted unacceptable energy bills back in 2011. We warned the Government year after year that energy bills did not go up and down in line with wholesale prices, and that consumers were being ripped off.
“It took until 2014 to set up the Competition Markets Authority enquiry into the energy market and they found shocking overcharging by the Big Six, amounting to £2billion a year by 2015. For two thirds of customers on expensive tariffs, that over-charging has gone unchecked until now.
“The energy companies have racked up £10-£12billion in excessive bills since 2012. Once this price cap is in place, the Government needs to look at reforming this broken market to guarantee consumers fair prices when the price cap ends.”
Following 28 days of consultation, the price cap will come into effect by the end of the year, affecting 11 million customers on expensive tariffs. The cap can be kept in place by the Government until 2023.