Theresa May accused of ‘complete betrayal’ of millions of voters after regulators bin her energy cap promise
Ofgem confirmed it was looking at introducing a 'safeguard tariff' to protect two million vulnerable customers instead
THERESA MAY was accused of a “complete betrayal” of millions of voters today as regulators binned her radical energy price cap promise.
A former Tory Minister said the PM had broken the party’s Election manifesto as Ofgem said it had no plans to cut the bills of 17 million customers.
Ofgem confirmed it was looking at introducing a "safeguard tariff" to protect two million vulnerable customers instead – as revealed by the Sun this morning.
Labour MPs lined up to savage the PM for “tinkering around the edges”.
The huge climbdown came despite new figures revealing a whopping £295 difference between the most expensive Big Six tariff and the cheapest deal on the market.
Ofgem separately revealed that profit margins at two of the Big Six – E.ON and Npower – had INCREASED in the past year.
Theresa May promised during the Election campaign to introduce an “absolute cap” on pricey standard variable tariffs to knock £100 off 17 million people’s bills.
Writing for the Sun in May, the PM said: “Too many people simply aren’t getting a fair deal.
“If I am re-elected on June 8 I will take action to end this injustice by introducing a cap on unfair energy prices.”
The first sign of a u-turn came after the Election result when the necessary legislation was dropped from the Queen’s Speech and the issue passed to Ofgem.
Speaking in the Commons today Greg Clark insisted the regulator’s proposals were a “wake up call” to the Big Six energy giants.
But Labour’s Shadow Energy Minister Alan Whitehead demanded: “Do you now intend to pass legislation that requires Ofgem to introduce a price cap or are you content now to let your election promise of a price cap fall by the wayside?
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“And if you do, what do you have to say to the 17 million people on standard variable tariffs who thought relief from rip-off price rises was on its way and who will now feel completely betrayed by this policy u-turn?”
Former Minister John Penrose accused the government and the Big Six of a “stitch-up”. And he said: “There are 17 million families currently being ripped off on expensive Standard Variable Tariff deals.
“Ofgem’s proposals will deal with at most 3 million of them. But that leaves 14 million still being preyed on by the Big Six energy firms.”
Labour backbencer Matt Weston accused the Big Six of operating like a “cartel” and said the government through Ofgem was “tinkering at the edges”.
Labour’s Diana Johnson asked if voters had to “change governments” if they wanted action.
Ofgem yesterday also said it would shake-up the rules governing price comparison websites to make it easier for Brits to switch suppliers. And the regulator will be trialling a switching service aimed at people on the same standard tariff for three years or more to see if they will change provider.
Greg Clark last October said the Government had a “duty” to end a £1.4 billion rip-off. Speaking at the Tory party conference he said the Big Six were “milking” loyal and elderly customers who were being charged as much as £300 a year more for power because they’ve never switched.
Gillian Guy, chief executive of Citizens Advice, said: “Capping energy bills for the poorest pensioners and families on standard variable tariffs will help those who have been let down most by a broken market.”
But Which? managing director Alex Neill said she feared the interventions outlined by Ofgem would not be enough to “deliver an energy market that finally works for all consumers”.