A price cap won't improve the energy market

Theresa May has announced plans to cap standard variable tariffs in the new Tory manifesto after acknowledging that vulnerable people can be affected by the "rip-off bills".

"But the real problem with this, as with Ed Miliband's proposal for a energy freeze in the 2015 General Election, is that the energy system remains in the hands of the corporations and therefore is operated in their interest, not for people or for sustainability".

The major intervention has been trailed for six months since Theresa May spoke out against the Big Six energy companies during her first speech to the Conservative conference as prime minister.

Business Secretary Greg Clark told Sky News: "The independent competition authority made an investigation into the energy markets and they found consumers were overpaying by £1.4bn a year - that's ranged in the past from £70 to £200 a year on people's bills".

The Liberal Democrats' Ed Davey said: "It is never a good idea to copy the economic strategy of Ed Miliband".

Justifying the move, the Conservatives pointed to a report previous year by the Competition and Markets Authority (CMA) which found 70% of domestic customers of the "Big Six" energy companies were on SVTs.

The group also cautioned that millions of consumers who had engaged in the market could see their bills rise "significantly", as suppliers hiked up prices on their better-value fixed deals.

Has Mr Miliband had anything to say about Mrs May's announcement?

GETTYHomes can save £300 with the best energy deals
GETTYHomes can save £300 with the best energy deals

"Evidence from other countries would suggest this will lead to reduced competition and choice, and potentially higher average prices", it said. However, Conn said Centrica's United Kingdom energy supply business makes up only a quarter of its operating cashflow.

"Further intervention risks undermining so numerous positive changes we are seeing in the market which are delivering benefits for consumers".

"With a cap it would be very hard for the "Big Six" to generate the kind of profits they have been able to".

SSE said the market was competitive, dynamic and fast changing, while Scottish Power said May's party had come to the wrong conclusion and that standard tariffs should be scrapped altogether.

Tories say the price limit could save 17 million families £100 a year, but energy bosses warned the Tory price cap could undermine competition. With the Conservatives nearly certain to win a majority, it's highly likely the pledge will be carried out.

According to data released by the Competition and Markets Authority (CMA) previous year, 70% of customers of Britain's "Big Six" energy providers - British Gas owner Centrica, SSE, E.ON, EDF, Scottish Power and nPower - have failed to switch from the highest standard variable tariffs. "Well, I can take a consumer onto a price competition website today and I could save them much, much more than that", he said.

"This policy from the Conservatives, just as the policy from Ed Miliband, will not work".

Capitals replace Holtby in goal for 3rd period of Game 2
The Stars, with a 5.8 per cent chance of winning the lottery, also had a good day, moving up into the No. 3 overall spot. The 26-year-old defenseman, who has been playing with a foot injury, also logged more than 28 minutes in the win.

Puerto Rico files for biggest United States municipal bankruptcy
As of September 30, Puerto Rico and its various bond issuing authorities had missed almost $1.5 billion in debt service payments. Sanchez disputed that opinion, saying that a court-supervised restructuring would actually provide more comfort to investors.

Amla's ton goes in vain as Punjab's playoff hopes suffer a setback
The left-hander did not score a boundary until he had faced 15 balls, but once he had gauged the conditions, he upped the tempo. Amla made 104 off just 60 balls with the help of eight fours and five huge hits over the fence to take Kings XI forward.


Popular
  • Trump signs religious freedom executive order

    Trump signs religious freedom executive order

    "We're going to start protecting religious liberty instead of assaulting it". He said in February he would "totally destroy" the amendment.
    National Day of Prayer: About 100 attend local event

    National Day of Prayer: About 100 attend local event

    In addition to the program from 2 to 3 p.m., is a 12:30 p.m. lunch reception for Loudoun pastors and other faith leaders. A midmorning National Day of Prayer service planned for outdoors in Grantville was moved to the city council chambers.

    Midwest, South recovering after deadly weekend storms

    Mayor Lou Ann Everett said Sunday that at least four people died and nearly 50 others were injured, according to local media. PHOTOS: Tornadoes rip through Canton, TexasIn Eustace, southwest of Canton, tornadoes ripped apart several homes.
  • Oil up as OPEC cuts outweigh US drilling boom

    Oil up as OPEC cuts outweigh US drilling boom

    This is part of the production cuts that the oil-producing kingdom had agreed to as a member of OPEC. USA light crude was also little moved at $46.28 a barrel, down from a intra-day high of $46.98.

    Wizards' Oubre Suspended After Charging Kelly Olynyk

    If, however, the Celtics do take down one of the best home team's in the league, things will look a lot more dim for the Wizards. Thomas acknowledged that the Wizards' 26-0 third-quarter run was the reason for the result, not the officiating.
    Mental health in New Jersey: More funding, awareness needed, advocates say

    Mental health in New Jersey: More funding, awareness needed, advocates say

    He was suffering from mental health illness and had been admitted to hospital the night before but discharged in the morning. This year, Mental Health Week is taking place from May 1 to 7, 2017 . "Don't be ashamed.
  • United Nations  chief 'encouraged' by deal on Syria safe zones

    United Nations chief 'encouraged' by deal on Syria safe zones

    It remains unclear precisely how the guarantors will monitor compliance with what they are calling "de-escalation zones". Trump, the presidents of Russian Federation and Turkey have recently supported the idea of creating safe zones in Syria.
    Kerala SSLC Result 2017 Grades - Check Kerala Pareeksha Bhavan SSLC 10th Result

    Kerala SSLC Result 2017 Grades - Check Kerala Pareeksha Bhavan SSLC 10th Result

    The results will be available in all high schools and higher secondary schools as they are equipped with broadband facility. The state government has conducted the Class 10th Board Examination as successfully from 8th March to 23rd March 2017.
    Turkish army, Syrian Kurdish militia in new clashes

    Turkish army, Syrian Kurdish militia in new clashes

    Erdogan said the sight of American flags in the convoy alongside YPG insignia had "seriously saddened" Turkey. The base is 50 kilometers (30 miles) from Syria's Tal Abyad, a town controlled by the Kurdish militia.
  • Led Zeppelin reunion rumours start again

    Led Zeppelin reunion rumours start again

    Led Zeppelin have sparked reunion rumours after frontman Robert Plant left a cryptic message on his official website . The internet also is abuzz because Plant's website has gone black-except for three words: "Any time now".
    Technical Watch on These Shares: Vornado Realty Trust (VNO)

    Technical Watch on These Shares: Vornado Realty Trust (VNO)

    After $0.44 actual earnings per share reported by AZZ Inc for the previous quarter, Wall Street now forecasts 93.18% EPS growth. COPYRIGHT VIOLATION WARNING: This news story was originally reported by [[site]] and is the sole property of of [[site]].
    Palestinians say dozens wounded at protests for prisoners

    Palestinians say dozens wounded at protests for prisoners

    That division has also been convenient, and encouraged, by those on the Israeli right who do not want a peace deal. These were the conditions set by the worldwide community when Hamas swept in the 2006 parliamentary elections.

CONNECT