Millions betrayed by Tories’ energy price cap U-turn, says Labour : Guardian.

Shadow energy minister says Ofgem plan ‘falls far short’ of Theresa May’s general election promise

electricity pylons
John Penrose, a Conservative MP and former minister who has led calls for a price cap, said Ofgem’s plans were a ‘stitch-up’ by the big six suppliers. Photograph: Andrew Milligan/PA

Labour has accused the government of betraying millions of households after the energy regulator published proposals to extend a price cap for vulnerable customers that fell well short of the Conservatives’ election promises.

Theresa May had pledged a price cap on energy bills for 17m families during the general election campaign, but the policy was missing from the Queen’s speech.

Instead, the business secretary, Greg Clark, wrote to the energy regulator asking it to safeguard “customers on the poorest value tariffs”.

In response, Ofgem said on Monday that it would hold a summit in July to consider what form of “safeguard tariff” would be best, with one option being to extend an existing cap for the 4m households on prepayment meters to a further 2.6m vulnerable households who receive the warm home discount.

Alan Whitehead, the shadow energy minister, asked Clark during an urgent question in the Commons whether he accepted that Ofgem’s response “falls far short” of May’s promise. Whitehead said 17m households “will now feel completely betrayed by this policy U-turn”.

Clark said he was prepared to legislate if the final proposals did not go far enough to address consumers paying over the odds.

John Penrose, a Conservative MP who has led calls for a cap, said the plans were a “stitch-up” by the big six suppliers and urged parliament to legislate.

“Ofgem’s proposals will not end the energy rip-off for 17m families, as we promised in our manifesto. Under this plan, fewer than 3 million customers will be helped and the remaining 14 million will see their energy bills rise as energy companies recoup the cost of the cap by milking the rest of us,” said the former minister in a statement.

Read More : The Guardian.

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8 Comments

  1. At the moment, I pay more for the standing charge than I do for the consumption of Gas. It smacks in the face of the charges for all costomers who try and cut back on using energy when the weather is as it is now.

    I’m dreading winter when we all have to keep warm during the cold spells that fall on us every year. Put blame on the greedy shareholders for this mess and the greedy CE’s who earn more than they deserve.

    Liked by 1 person

    1. My father was told something interesting when they tricked him off a tariff with no standing charge. He phoned to complain and was told by an employee they were being told to get as many people as possible off the cheaper no standing charge tariff to help cover the amount they were losing because so many people could not pay their bills and they were having to write off their debts.

      Liked by 1 person

    1. Already counting all the money they will save when they sack all the meter readers? They are selling this as an idea to save energy I would be interested to know if they are getting any government/EU money towards these smart meters as an eco option?.

      OK I found some info form the US probably the smae shit going on here.

      The American Recovery and Reinvestment Act of 2009 (Recovery Act) – which President Obama signed into law on February 17th, 2009 – was an unprecedented action to stimulate the economy. It included measures to modernize our nation’s energy and communication infrastructure and enhance energy independence. The American Recovery and Reinvestment Act of 2009 (Recovery Act) provided DOE with $4.5 billion to modernize the electric power grid. Under the largest program, the Smart Grid Investment Grant (SGIG), DOE and the electricity industry have jointly invested $8 billion in 99 cost-shared projects involving more than 200 participating electric utilities and other organizations to modernize the electric grid, strengthen cybersecurity, improve interoperability, and collect an unprecedented level of data on smart grid operations and benefits.

      https://www.energy.gov/oe/information-center/recovery-act-smart-grid-investment-grant-sgig-program

      Liked by 1 person

  2. All it would take is some ”bright spark” to figure out a way to hack these – so called – smart meters, and suddenly the power companies have a serious problem.

    Not to mention the little matter of the generators going at full speed – with no let up because everyone has their free heating and hot water switch on – morning noon and night…lol

    Like

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