Price cap on energy bills urgently needed, says committee
Competition was not working and had failed to deliver fair prices for consumers, a select committee said.
The committee said it was “underwhelmed by the feeble steps” taken by energy companies to avoid government action.
The cap should be temporary and fixed at an “absolute” level, rather than set relative to other tariffs.
Legislation should be passed before the summer recess, the report suggested, which should allow the cap to be in place before the end of the year.
The Business, Energy and Industrial Strategy Committee has been examining the government’s draft bill to cap energy tariffs, following a commitment made last year by Theresa May.
“The Big Six energy companies might whine and wail about the introduction of a price cap,” said Rachel Reeves, the committee’s chairwoman.
“But they’ve been overcharging their customers on default and standard variable tariffs for years and their recent feeble efforts to move consumers off these tariffs has only served to highlight the need for this intervention.”