Energy price cap IS working despite £117 hike hitting British families, ministers insist
Energy Minister Claire Perry told The Sun that prices would be even higher without the cap
THE Energy Minister has launched a fierce defence of the Government’s power bill price cap - insisting: We’re no fat cats.
Ministers were left humiliated on Thursday when regulators pushed up gas and electricity bills for 11 million Brits by a stonking £117. It came just weeks after the cap on standard tariffs came into force.
But Claire Perry told The Sun the increase would have been even HIGHER if the Big Six had complete freedom.
“They would have added more for their profits,” she said.
And she insisted that unlike before any softening in market prices would be passed on in the form of lower bills straightaway.
She told The Sun: “One of the things we haven’t seen in the market is savings being passed on as quickly as they might have been when changes happen.
“Ofgem showed customers didn’t see any reduction at all between 2016 and 2017 when prices should have come down.
“This is fairer.”
The Minister added the cap would be reviewed “every two to three months” - despite Ofgem’s insistence it can only change the price twice a year. Aides believe intense pressure from campaigners could force Ofgem’s hand.
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Theresa May announced she was pressing ahead with a cap last year - two years after The Sun revealed millions of loyal customers on standard variable rates were being ripped off.
Business Secretary Greg Clark accused the Big Six of “milking” customers by £2billion a year.
Last week’s price rise of nearly 10 per cent will take effect in April - pushing average capped bills to £1,254 a year. Ofgem put £74 of the £117 rise down to higher wholesale prices. Much of the rest came down to “policy costs” - driven by the Government’s green agenda.
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