Theresa May is expected to forge ahead with an energy price cap this week despite misgivings among Tory ranks and warnings it could prove a “political and consumer timebomb”. If the prime minister opts for the wide-ranging intervention promised during the election – which she said would save 17m households up to £100 on bills – such a measure would require primary legislation and feature in the Queen’s speech on Wednesday. Cabinet ministers have told May to drop the proposal, according to a report last week, but it is understood some form of restriction on bills will be introduced. However, there is a possibility that the government will bow to pressure from ministers by introducing a watered-down “relative” cap. A relative price cap would see the most expensive deals from a supplier pegged at no more than a certain percentage above the cheapest tariff offered by that company.
Guardian 19th June 2017 read more »