MPs seek expert energy evidence on planned price-cap on fuel bills

MPs are calling for energy experts, providers and public alike to submit evidence to their inquiry into the price-cap on gas and electricity bills.

In addition, to seeking submissions on the Brit-Govt’s  Draft Energy Price Cap Bill, MPs on Westminster’s  Business, Energy and Industrial Strategy Committee will quiz Energy minister Greg Clark next week.

Labour MP Rachel Reeves, Chairman of the BEIS Committee, said: 

“The energy market isn’t working. Millions of customers are stuck paying far too much for their gas and electricity and face exorbitant bills dropping through their letterboxes this winter.

“The Government’s stated objective is “protecting customers until the conditions for effective competition in this market are in place

“As a Committee we want to take a close eye to the Government’s proposals and make recommendations to ensure that the reality of a price cap can match the rhetoric by delivering lower bills for consumers and fixing the broken energy market”.

The 12 key issues which MPs want to hear about:

  • Are the draft legislation’s provisions necessary, workable, and clear? If not, what changes need to be made?
  • Are the five matters listed in clause 1(6)(a) to (e) compatible?
  • What priority should each one have?
  • Should the cap be an absolute cap? If not, what kind of cap should be set and why?
  • Should the cap be only on Standard Variable Tariffs and default tariffs?
  • Should the cap be intended to have the same impact on all suppliers?
  • Should the cap be temporary? If so, for how long should it apply?
  • How will the roll out of smart meters affect policy on the price cap?
  • What factors should be included in the determination of the cap?
  • What is the likely impact of the legislation on energy suppliers, the energy market and investment in the energy sector?
  • What is the likely impact of the cap on customer engagement and switching?
  • What evidence is there of the impact of price caps on prices, competition and switching in other countries or in the UK?

The deadline for submissions is 29 November 2017.

 

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