Commons Sense

House of Commons · Written Ministerial Statement

Energy Default Tariff (Price) Cap Conditions for Effective Competition Decision 2020

20 October 2020 · Department for Business, Energy and Industrial Strategy

Proposed by Alok Sharma Con Reading West

Energy

Summarised by AI from the official record, so it can contain mistakes.

View on Parliament.uk

At a glance

Key points

  • The price cap on standard variable and default energy tariffs will continue for 2021.
  • This decision aims to protect over 11 million households from unfair pricing practices.
  • The continuation of the price cap is based on Ofgem's recommendation to ensure effective competition.

Issue summary

The statement discusses the continuation of the price cap on standard variable and default energy tariffs for 2021.

Action requested

I have announced that the price cap will remain in place, protecting over 11 million households from unfair pricing. This decision is based on Ofgem's recommendation and the current need to ensure effective competition in the domestic supply contracts market.

Key facts

  • The price cap can be extended for a year at a time up to the end of 2023.
  • More than half of energy consumers are still on standard variable or default tariffs.
  • Over 11 million households will continue to be protected from overcharging.
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