According to the Competition and Markets Authority, British customers have been overpaying for their energy to the tune of £1.4 billion per year. In 2017, Ofgem’s State of the Energy Market painted a problematic picture, with some vulnerable customers unable to manage bills, leading to debt and under-heated homes. Moreover, 60% of consumers were on a default tariff, which can cost up to £300 more than a fixed-term deal. This policy is a promise to pay immediate attention to the energy market.
In August 2017, the government commissioned Professor Dieter Helm to review the energy industry. His Cost of Energy Review was published in October 2017. It found that the cost of energy was significantly higher than necessary, and that the industry needs to adapt to a low carbon energy market.
In July 2018, the government legislated to cap energy prices on the two most expensive tariffs, standard variable and default, protecting consumers from energy price hikes.
The government commissioned and considered the Helm review, capped energy prices, and is consulting on further planned changes. It has followed through on the pledge to “pay immediate attention to the retail energy market”. This policy is ‘done’.
Pay immediate attention to the facts!
- State of the Energy Market 2019 – Ofgem
- Cost of Energy Review – Gov.uk
- Future energy retail market review – Gov.uk
- Domestic Gas and Electricity (Tariff Cap) Act 2018 – Gov.uk