Citizens Advice hails the energy price cap legislation as an important step towards an energy market that works better for consumers
Citizens Advice has responded to the government’s draft legislation to create a price cap in the energy market.
Gillian Guy, chief executive of Citizens Advice, said:
“The runaway costs of default energy tariffs need to be tackled, and this draft bill is an important step towards an energy market that works better for consumers. We look forward to working with the select committee and BEIS to make sure the legislation succeeds in its mission to ensure no one gets ripped off simply for being on a default tariff.
“We agree with the government that an absolute cap is a better option than a relative cap, and will help to ensure the market remains competitive so that consumers who shop around can still get a good deal.
“However, a cap on prices isn’t the end of the story when it comes to fixing the broken energy market, which is why it is vital that Ofgem takes into account the need to protect vulnerable consumers, encourage efficiency, and incentivise switching when it sets the cap. This is particularly important given the temporary nature of the measures.
“It’s also crucial that Ofgem monitors the impact of these changes closely, and is ready to take action quickly if it’s not having the intended effect on household bills.”
Citizens Advice’s analysis has found that over the last year dual fuel bills for people on the standard variable tariff rose by £89 - three times the rate of inflation.
Notes to editors
- The Citizens Advice service comprises a network of local Citizens Advice, all of which are independent charities, the Citizens Advice consumer service and national charity Citizens Advice. Together we help people resolve their money, legal and other problems by providing information and advice and by influencing policymakers. For more see the Citizens Advice website.
- The advice provided by the Citizens Advice service is free, independent, confidential and impartial, and available to everyone regardless of race, gender, disability, sexual orientation, religion, age or nationality.
- To get advice online or find your local Citizens Advice in England and Wales, visit citizensadvice.org.uk
- You can get consumer advice from the Citizens Advice consumer service on 03454 04 05 06 or 03454 04 05 05 for Welsh language speakers.
- Local Citizens Advice in England and Wales advised 2.5 million clients on 6.2 million problems in 2014/15. For full service statistics see our publication Advice trends.
- Citizens Advice service staff are supported by more than 21,000 trained volunteers, working at over 2,500 service outlets across England and Wales.