Crabb welcomes energy price cap success

Stephen Crabb MP has welcomed the Prime Minister’s recent announcement of a change in the law to cap energy prices for thousands of families in Pembrokeshire.

 

The decision follows a cross-party campaign, supported by Mr Crabb, to pressure the Government into a solution to unfair pricing by the ‘Big Six’ energy firms. Stephen was among a number of former Ministers and senior MPs to sign a letter to the Prime Minister and Business Secretary calling for the cap to be brought in.

 

Recent evidence has shown that 17 million households are paying too much for their gas and electricity as a result of costly Standard Variable Tariffs. These tariffs often cost far more than the cheapest deals which energy companies offer. It is estimated that families across the UK are paying a total of around £1.4 billion more than is necessary for their energy.

 

Furthermore, large energy companies have recently increased their prices by up to 15%. The regulator OFGEM has said these increases are difficult to justify.

 

Commenting on the move to cap prices, Mr Crabb said:

 

“The big energy firms have been given many opportunities to put their house in order but still we have a market which penalises loyal customers who do not switch onto the special cut price deals. It is often families on low incomes who are trapped on the high price contracts. So the time has come for real action to reduce prices across the board.”

 

“I am pleased that the Prime Minister has listened to the calls that I and others have been making to bring in a cap. What the Government is now proposing could save families in Pembrokeshire up to £200 a year.”