MPs on the Business, Energy and Industrial Strategy (BEIS) Committee will be questioning witnesses from E.ON, Centrica and SSE and also representatives from small and medium-sized energy companies as part of the Committee’s pre-legislative scrutiny of the Government’s draft bill to cap energy prices.
The BEIS Committee’s pre-legislative scrutiny of the Government’s Draft Domestic Gas and Electricity (Tariff Cap) Bill involves examining the objective, provisions, and likely impact of the legislation.
The Committee will also be holding public evidence sessions in January as part of this inquiry before producing a final report.
The session is likely to examine suppliers’ views on the impact that price controls will have on their capacity to operate efficiently and innovate. The session is also likely to explore the recent announcements made by big suppliers regarding Standard Variable Tariffs, the positions of small suppliers on the Bill, and concerns about loopholes in the draft legislation, including the exemption of ‘green’ electricity tariffs, which may leave consumers unprotected.
Labour MP Rachel Reeves, Chairman of the BEIS Committee, said: “The energy market isn’t working.
“Millions of customers are paying too much for their energy, with 12 million customers stuck on Standard Variable Tariffs and being hit in the pocket for their loyalty.
“ It’s increasingly clear from our evidence that there is a lack of progress in tackling the issue of SVTs and that more needs to be done to reduce consumer bills.
“Tomorrow, we will have the opportunity to question some of the big energy companies, who oppose an energy price cap, and also quiz medium-and-small energy companies on the Government’s proposals. As a Committee, we will be determined to play our role in ensuring this draft Bill is as effective as it can be in delivering on the Government’s promise to deliver lower energy bills for consumers”.
18 Dec 2017