Robin Walker hails Ofgem’s energy price cap

Worcester MP Robin Walker hailed the announcement made yesterday by independent energy regulator Ofgem which provided full details of the Government’s price cap, and which will come into force on 1st January 2019 after an extensive consultation.

For millions of customers, the energy market has not been working effectively. The Government’s priority is to safeguard the interests of these customers until the conditions for effective competition in this market are in place. Robin supports this delivery of a key commitment from the Conservative Manifesto which brings an end to rip-off energy prices, and allows more people across the country to keep more of their hard earned money in their pockets.

Many consumers on default deals use more energy than a typical household so their savings will be higher, while those who buy their electricity and gas from different suppliers will also save more. A typical consumer on the most expensive tariffs would save over £120. In total, the price cap will save £1billion of overcharging from consumers’ bills.

Yesterday’s final price cap brings greater fairness to energy prices and puts consumers at the very heart of the energy market. Robin has welcomed this announcement, which protects households from unfair price rises in time for the winter months, when the people of Worcester may feel the pinch more acutely.

Speaking after yesterday’s announcement, Robin said:

“The final announcement of the energy price cap is great news for my constituents in Worcester. Those on the most expensive tariffs will now be saving over £120 a year, delivering on a key manifesto commitment that will help local people keep more money in their pockets, and ensure the economy works for everyone. During the winter, I know that the expense of powering homes can become a worry for the people of Worcester and I am delighted that the unfairness of some tariffs will come to an end in January 2019 helping my constituents save money.”

Dermot Nolan, chief executive of Ofgem, said:

“From 1 January, the energy price cap will put an end to customers on default tariffs being overcharged as much as £1 billion for their gas and electricity. The price cap will ensure that whether energy costs rise or fall suppliers are not feathering their nest and changes in energy prices will reflect the underlying costs to heat and light our homes.”

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