On Monday (April 30th), the Domestic Gas and Electricity (Tariff Cap) Bill was backed by MPs and it will now pass to the House of Lords with the expectation that it will become law by this summer.
Whilst a member of the Business, Energy and Industrial Strategy Committee, Rachel worked with MPs from all parties to scrutinise the energy price cap and backed the Committee’s report which supports the Government’s plans to protect more consumers.
The Bill fulfils the Conservative Manifesto promise to protect consumers from unfair energy bills and is the first step in reforming the broken energy market.
For many residents here in Redditch the energy market is not working. Although some residents who shop around and switch suppliers could save around £300 each year, energy bills still remain higher than they should for millions of households in the UK.
That’s why the Conservative Government is taking action to protect Redditch residents from rip off energy bills. The energy price cap, backed by Rachel, will see an absolute cap put on default standard variable tariffs by the end of the year. The action the Government is taking will see 11million households on these rip off tariffs feel the benefits of cheaper energy bills this winter, including thousands of residents here in Redditch.
Ofgem have already introduced a safeguard tariff cap on prepayment meters, saving five million of the most vulnerable customers an average of £60 each year.
This Bill is part of the Conservative Government’s larger efforts to reform the energy market, giving more power to consumers, increasing competition through the rollout of smart meters and making switching suppliers quicker and easier for everyone.
Rachel said: “I was proud to vote for this Bill which will offer protection to households right across Redditch from rip off energy bills that hit the most vulnerable residents the hardest.
“I know that high energy bills are a big concern for many of my constituents, and I am proud that we have introduced this smart, temporary, market intervention while we work to fix the market by giving power to consumers and increasing competition.”