Theresa May vows to cap ‘unfair’ energy bills and stop Big Six fat cats ripping you off

THERESA May today pledges to  enforce a cap on energy bills to end the “injustice” of fat cat firms ripping off poor customers.

The PM unveils one of her flagship policies of the general election campaign with an article in the Sun today.

Under her bold plan, watchdog Ofgem will set a maximum figure that firms can charge for units of electricity and gas every six months.

Mrs May reveals she expects the tough move to save 17 million families stuck on poor value tariffs as much as £100 a year.

Marking her personal stamp on the controversial initiative, the PM insists it proves her “determination to stand up for Sun readers” - in a hint there is also more action for struggling workers to come.

Her declaration ends a bitter Cabinet fight over the plan, which has been long called-for by The Sun.

Some senior ministers fought to stop the major intervention in the market, insisting it was “un-Tory” and would fail to lower prices.

But the PM writes: “It is clear to me that the energy market is not working for ordinary working families.

“Too many people simply aren’t getting a fair deal.

“I am re-elected on June 8, I will take action to end this injustice by introducing a cap on unfair energy price rises.”

The plan is targeted at the 17 million households who are having to pay eye-watering standard variable tariffs.

Research reveals seven out of 10 of all bill payers have automatically slipped onto the rip off rates once their cheap deals expire.

The PM cites a Government-backed report last year that found homes are already paying £1.4 billion a year more than they need to.

And only yesterday, it was revealed that big energy suppliers’ profit margins hit a record high last year as they failed to pass on savings of wholesale cost drops.

The combined profits of five of the Big Six fat cat suppliers - British Gas, EDF Energy, Eon, Npower and Scottish Power – shot up by 7.8%, or almost £1.1 billion in 2016, analysis by Lazarus Research showed.

Prices have risen more than 150% over the last 15 years.

Mrs May also heaped praise on this newspaper’s campaign to push down energy bills.

She writes today: “I want to pay tribute to The Sun’s tireless campaigning on this issue”.

The action follows a similar cap slapped on prepayment gas and electricity meter prices at the beginning of April, which is also managed by Ofgem.

At the last general election, then Labour leader Ed Miliband proposed an energy bill freeze, which the Tories attacked.

The policy is also unpopular with traditional Tory activists, and was ranked bottom as a priority in a survey of them by Conservative Home website yesterday.

But Mrs May’s aides last night insisted her cap is different as it still allows bills to fall if the price of energy drops.

Business Secretary Greg Clark added: “Under Theresa May’s strong and stable leadership, we will act on our commitment to intervene when the energy market fails to treat people in a fair and reasonable manner”.

British Gas’s parent company, Centrica, yesterday repeated their opposition to any cap on bills and warned it could lead to higher prices.

Britain’s biggest energy provider said: “Centrica does not believe in any form of price regulation.

“Evidence from other countries would suggest this will lead to reduced competition and choice, and potentially higher average prices.”

But Mrs May’s plan was given a warm welcome by campaigners.

Citizens Advice Chief Executive Gillian Guy said: “People who stay with the same supplier are being penalised for their loyalty - paying hundreds of pounds more a year for the same gas and electricity.

“It’s often those who can least afford it - like pensioners and people who don’t earn much money - who are stuck on these high bills.”