One million more vulnerable consumers will be protected by extension to Ofgem safeguard tariff cap
- Ministers welcome move by regulator to protect more vulnerable consumers
- Move will now see a total of 5 million consumers protected by safeguard cap this winter
- Government’s new energy price cap legislation will be introduced later this year
Energy and Clean Growth Minister Claire Perry today (7 February) welcomed the protection that 1 million more vulnerable consumers will get this winter from the extension of the energy regulator’s safeguard tariff cap.
With the cap in place, these consumers will only see an increase of around 3.7% in their bills compared to an average 8% increase of dual-fuel standard variable tariffs of the Big Six last year.
Ofgem’s extension of the current prepayment meter cap to those who receive the Warm Home Discount means 5 million people are now protected from unfair energy price rises.
The move comes as the government’s own energy Tariff Price Cap Bill is expected to be introduced to Parliament shortly. The Bill will extend the price cap to the highest tariffs.
Energy and Clean Growth Minister Claire Perry said:
“It is a positive step that a million vulnerable consumers are now being protected from unfair energy price rises through the energy cap.
“But energy tariffs are still too high – customers of the Big Six energy suppliers are overpaying by up to a staggering £1.4 billion a year. This is totally unacceptable and why government will continue to go further – including by bringing in new laws in the forthcoming energy Tariff Price Cap Bill to put an end to rip-off standard tariffs.”