Labour pledges to ‘take on the Big Six’

Opposition claims its policy would have saved consumers £1149 over seven years

The Labour party has reiterated its pledge to introduce an energy price cap if elected to power, claiming that such a price cap would have saved the average consumer £1149 since 2010.

Further increasing pressure on the government to take action on energy bills, the shadow secretary for business, energy and industrial strategy, Rebecca Long-Bailey, said in a statement: “Working people are suffering rip-off price hikes by the Big Six energy companies whilst at the same time many bosses continue to carry on paying themselves obscene amounts. That’s the Tories’ rigged economy in action and they will do nothing about it.

“The next Labour Government will take the tough action needed on the energy companies. We’ll impose a hard price cap on energy bills that will immediately end rip-off price increases, and we’re prepared to take on the Big Six to do it. Labour is standing up for the people against the elite.”

Labour’s statement follows reports at the weekend that more than 90 MPs, including 50 Conservatives, have signed a letter calling on prime minister Theresa May to introduce a market wide price cap. Ofgem is currently consulting on a limited “safeguard tariff” which would extend the price protection currently given to prepayment meter customers to around 2.2m other vulnerable customers. Speaking to the Financial Times last week, Ofgem chief executive Dermot Nolan said wider intervention would have to be a “policy matter for government,” as energy suppliers would have a “substantive appeal route” if the regulator acted without legislation.