Ofgem is likely to propose an energy price cap for only about two million households after being handed responsibility for implementing the Conservatives’ manifesto pledge, analysts have forecast. Energy companies, expecting an announcement by the regulator within days, could fare significantly better than investors had feared if the analysis by Bernstein proves to be correct. Theresa May pledged before the election to cap all standard variable tariffs, affecting 17 million households and threatening to wipe hundreds of millions of pounds from suppliers’ profits. The Conservative manifesto left wiggle room, however, promising only to extend the cap that applies at present to the four million households with pre-payment meters to “more customers” on the poorest-value tariffs.
Times 1st July 2017 read more »