The full brunt of the Government’s proposed cap on energy prices may only be felt towards the end of next winter, offering suppliers a stay of execution during which they can move customers to better value deals.
The regulator, Ofgem, today vowed to extend its price cap for customers using pre-payment meters to include 1 million households considered socially vulnerable.
The move comes ahead of Government’s bid to compel Ofgem to take tougher action by legislating stronger powers for a cap on bills for 15 million households, which is expected on Thursday.
Prime Minister Theresa May 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.
“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.”