Energy prices WILL be capped for millions of households stuck on standard rate tariffs, May vows – but the law might NOT be changed
- May revived her energy price cap plan that was dumped after the election
- The PM has been under pressure from scores of Tory MPs over the issue
- But business reacted with horror to the measure branding it state intervention
Theresa May today vowed she would cap energy bills for millions of households afterall, despite apparently dropping the plan after the election.
In her conference speech the embattled Prime Minister announced she would produce a draft new law to cap standard rate tariffs used by 17million homes.
The legislation appears intended to pressure regulator Ofgen into creating its own cap without a law change as Tory sources said the draft laws could be withdrawn if a quicker way of reaching the same reform emerged.
Mrs May's announcement came after more than 70 Tory MPs joined forces with more than 100 opposition MPs to demand to she stand by the election promise.
Scroll down for video
Theresa May today vowed she would cap energy bills for millions of households afterall, despite apparently dropping the plan after the election
In her conference speech the embattled Prime Minister announced she would produce a draft new law to cap standard rate tariffs used by 17million homes
Her speech triggered a slump in the share price of energy firms, and led to the Confederation of British Industry (CBI) warning that price caps are 'not the best answer'.
In her speech, Mrs May said the Tories would always take action to fix 'broken' markets and tackle 'monopolies and vested interests'.
In her keynote speech to the Conservative Party conference, she accused energy giants of hiking bills for customers who do not shop around for a better deal.
'We will always take on monopolies and vested interests when they are holding people back,' she said.
'One of the greatest examples in Britain today is the broken energy market.
'The energy market punishes loyalty with higher prices and the most loyal customers are often those with lower incomes, the elderly, people with lower qualifications and people who rent their homes.
'Those who, for whatever reason, are unable to find the time to shop around.
'That's why next week this Government will publish a draft bill to put a price cap on energy bills, meeting our manifesto promise and bringing an end to rip-off energy prices once and for all.'
Mrs May's announcement came after more than 70 Tory MPs joined forces with more than 100 opposition MPs to demand to she stand by the election promise
CBI director general Carolyn Fairbairn said: 'Affordable energy matters for everyone and particularly for the most vulnerable.
'However, today's announcement is an example of state intervention that misses the mark. Market-wide price caps are not the best answer.
'Suppliers are already acting, providing support to those on pre-payment meters, and continued action to phase out standard variable tariffs would benefit a wide range of consumers, including those on the lowest incomes.'
Ex Tory minister John Penrose has lobbied for the return of the price cap
British Chambers of Commerce director general Adam Marshall said: 'Businesses will be confused by the Prime Minister's commitment to free markets, on the one hand, and her stated intention to intervene in the energy market, on the other.
'Attention must be paid to avoid unintended consequences that drive up costs to consumers or businesses.'
Lawrence Slade, chief executive of the trade association Energy UK, said more than three million consumers had switched already this year and the number of standard tariffs had fallen by almost a million in the last six months.
He said: 'It is important that we do not risk halting this growth of competition and engagement in the market.'
The move was welcomed by Citizens Advice chief executive Gillian Guy, who said: 'The Prime Minister's announcement of a cap on energy bills could provide a solution to the runaway energy costs that the millions of people on default tariffs have faced for years.'
Ex minister John Penrose, an organiser of the energy bills rebellion, said: 'The PM is absolutely right to protect households from rip-off energy bills with an energy price cap if Ofgem are too spineless to act.
'She'll have plenty of support, with over 200 cross-party MPs and most of the 'challenger' energy firms supporting a relative price cap.
'It's the best way to protect families from being ripped off, it would keep plenty of customer choice, competition would be red hot, and the customer would be king once again.
'I look forward to seeing the Government's draft bill next week.'
Most watched News videos
- New video shows Epstein laughing and chasing young women
- British Airways passengers turn flight into a church service
- Epstein describes himself as a 'tier one' sexual predator
- Skier dressed as Chewbacca brutally beaten in mass brawl
- Two schoolboys plummet out the window of a moving bus
- Buddhist monks in Thailand caught with a stash of porn
- Melinda Gates says Bill Gates must answer questions about Epstein
- Police dog catches bag thief who pushed woman to the floor
- Holly Valance is shut down by GB News for using slur
- JD Vance turns up heat on Andrew Mountbatten-Windsor
- China unveils 'Star Wars' warship that can deploy unmanned jets
- Sarah Ferguson 'took Princesses' to see Epstein after prison
