The MP for Telford, Lucy Allan, has today welcomed the Government’s introduction of new legislation to cap poor value energy tariff – a policy proposal that could benefit 11 million households throughout the UK, including those in Telford.
The Domestic Gas and Electricity (Tariff Cap) Bill will put in place a requirement on the independent regulator, Ofgem, to cap default energy tariffs until 2020. This will protect 11 million households in England, Wales and Scotland who are currently on a standard variable or other default energy tariff.
Currently some consumers are paying up to £300 more than they need to. This cap will help bring overcharging under control.
It is believed the new legislation will save households, on average, £100 a year.
The Bill is part of a package of measures being introduced by government to increase competition in the retail energy market and lower prices for consumers, including the rollout of start meters in every household and initiatives to promote smarter and faster switching.
The Government plans to implement the cap as soon as possible, so that customers get the protection they need by next winter
Commenting on the introduction of this new legislation, Ms Allan said:
“I’m delighted the Government is fulfilling its election manifesto commitment to reduce energy costs for those on poor deals
“This was a key election policy, which gained real traction in Telford, and will bring potential savings of hundreds of pounds to households across the constituency”