‘Big 6’ rival energy firms back PM’s radical plans for a price cap on the most expensive deals
Campaigners urge the Big 6 to drop fierce opposition so energy industry can stop treating Brits like 'chumps'
A DOZEN energy “challenger” firms representing over two million customers are backing calls a price cap, the Sun can reveal.
The suppliers from OVO to Ebico are supporting Theresa May’s radical plans to intervene in the market, Tory campaigner John Penrose said.
And he urged the Big 6 to drop their fierce opposition so the energy industry can stop treating Brits like “chumps” and “hold its head up high at last”.
Mr Penrose is calling for a ‘relative’ price cap where the Government sets a maximum mark-up – or difference - between a suppliers most expensive and cheapest tariff. He has suggested a 6 per cent variation.
And the former Minister last night warned Theresa May that an “absolute” cap demanded by consumer watchdogs would not work.
In the first sign of a split in the party, he said: “An absolute price cap would mean the regulator would set a maximum price.
“But they’d get it wrong, because even the best regulator can’t keep up with all the twists and turns of international gas and electricity prices.
“And it would throttle competition and innovation too.”
The Government has vowed to lay out plans to tackle the Big 6 in the Tory manifesto on May 8.
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Sources last weekend claimed the PM would slash £100 off 17 million people’s energy bills through a cap. This suggested the cap would be a maximum price gas and electricity customers can charge customers on standard variable rates – used by 7 in 10 households.
Ovo chief Stephen Fitzpatrick said a relative price cap would be a vital first step “towards long-term fair pricing for all”. Andrew Lindsay, boss of Utility Warehouse, added: “We strongly endorse the proposed introduction of a relative price cap.
“This practical solution will create a fairer energy market and promote competition.” The other companies include Octopus Energy, PFP Energy, So Energy, Bulb Energy, Fischer Energy, Ebico, Ecotricity, Squeaky Clean Energy, Good Energy and Utilita.
The Sun in October launched our ‘Power to the People’ campaign – demanding a fair deal on energy bills. We revealed customers on standard variable tariffs are paying as much as £389 more than those on the same firms’ most competitive rates.
Business Secretary Greg Clark said the Government had a “duty to act” – and slammed energy giants for milking loyal customers who hadn’t switched.