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Energy Default Tariff (Price) Cap Conditions for Effective Competition Decision 2020
20 October 2020
Type
Written Ministerial Statement
Department
Department for Business, Energy and Industrial Strategy
At a Glance
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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Assessment & feedback
Summary accuracy