The Government is to publish draft legislation to enforce a cap on some energy prices on Thursday.
Prime Minister Theresa May announced in her speech to Conservative Party conference last week that she would use the law to protect vulnerable consumers from energy price hikes.
The draft legislation to be unveiled by Business Secretary Greg Clark on October 12 is expected to provide energy regulator Ofgem with powers to impose a cap on standard variable tariffs over the whole market.
Ofgem is already preparing its own proposals for a cap, and Downing Street made clear last week that the legislation could be ditched if the regulator’s plan is able to achieve the same objective more quickly.
Announcing the date of the publication of draft legislation, Mrs May’s official spokesman told a regular Westminster media briefing: “The Prime Minister said at conference that we recognise the difficulties that people are facing and that is why we are moving quickly after the Prime Minister’s conference announcement.”
Last week Theresa May said the plans will “bring an end to rip-off energy prices once and for all”.
“We will always take on monopolies and vested interests when they are holding people back,” she declared.
The draft legislation would let regulator Ofgem put a cap on the price of all standard variable tariffs (SVTs).
These are the most common deals in Britain used by two-thirds of families.
The cap would most likely be set by the Ofgem and move with the market. So bills could still rise, but just not as much.
The government have insisted that the proposed cap is not the same as a policy suggested by Ed Miliband in 2013.
The then Labour leader was pilloried in the right wing press and by the Tory party who described it as “dangerous” and “Marxist”.