The Government’s energy price cap legislation has sent an “important message to the industry” the Prime Minister has said as she expressed “hope” that it would “make changes even before we get the legislation on the statute book”.
Theresa May told MPs the draft legislation would see “rip off” prices being capped for millions of households to all standard tariff customers, adding that while this would initially run to 2020, “we will be able to extend it on an annual basis until 2023 on the advice of Ofgem”.
Her comments came as Labour’s Rachel Reeves (Leeds West), chairwoman of the Business, Energy and Industrial Strategy Committee said she believed there was “strong cross party support” for the move, but she called for greater detail on the timing of the changes.
Speaking during Prime Minister’s Questions, Ms Reeves said: “At the General Election both main parties committed to an energy price cap. The Government have now published a Bill for which I believe there is strong cross party support.
“So will the 14 million customers on standard viable tariffs actually see their energy prices come down this winter and if not when will the Prime Minister get onto the statute books legislation to ensure that this is the last winter where customers can be ripped off by their energy companies?”
Mrs May responded: “I welcome the fact that she says that she and others on the Labour benches will support the legislation… It is important that we take action to deal with the energy prices.
“The draft legislation will see those rip off prices being capped for millions of households to all standard tariff customers and while this will initially run to 2020, we will be able to extend it on an annual basis until 2023 on the advice of Ofgem.
“I think we’ve sent an important message to the industry, I would hope that they are actually going to make changes even before we get the legislation on the statute book.”