Ministers ‘dithered’ over price cap, says Labour

Heated Parliamentary debate on draft bill

Labour has accused ministers of dithering over household energy bills by not legislating immediately to cap prices.

In a debate last week following the publication of the draft bill to cap standard variable tariffs, opposition MPs lined up to criticise the timing of the proposed legislation.

The bill is in draft form, which means it will be subject to scrutiny before it is tabled in Parliament.

Once the legislation has been passed, Ofgem has signalled that it would take at least five months to introduce a price cap.

Ed Miliband, who proposed a freeze on energy bills when he was leader of the opposition, said that the government’s move was ‘a bit slow’.

“It is four months since the general election. He said that there would be help this winter. He could have chosen to fast-track this measure with the opposition front bench and get the help in now.”

Rebecca Long-Bailey, shadow secretary of state for BEIS (business, energy and industrial strategy), said: “Owing to the Government’s dithering, the 4 million households in fuel poverty, almost 1 million of which include a disabled person, will now face another winter of cold homes or astronomical bills. ​

“I hope that we do see action before 2020 because the cap is only guaranteed for the next two winters.”

Her opposite number, secretary of state Greg Clark defended the decision to publish a draft bill, arguing that the legislation needed technical scrutiny and that the extra time would create the scope for establishing a consensus on the nature of the cap.

“It is important that we establish that it has the support of the House and then Ofgem can act on that, but it has been clear as the bill is scrutinised, it will prepare and consult on the implementation requirements so that no time is lost.

“Once the Bill has passed that scrutiny and been introduced to the House, it can proceed with the strongest possible consensus.”

Clark also hit back at the opposition by branding Labour’s proposed of utilities nationalisation as ‘disastrous’.

Conservative MP John Penrose, who has helped to lead the backbench Parliamentary campaign to tackle energy bills, welcomed the government’s move on the issue but criticised its decision to pursue an absolute cap.

He said: “An absolute cap would throttle competition, be out of date as soon as the wholesale price of gas changed and mean energy companies spending more time lunching their regulator than delighting their customers, whereas a relative cap would preserve competition, make the customer king and provide far wider consumer choice.”