energy price cap

The Big Six energy suppliers throw clear warning that energy price cap would have a straight effect on the smart meter roll out as companies facing losses won’t be able to invest in government initiatives. They also hinted that the energy price cap would be responsible for lower investment in the energy sector. As per two of the biggest energy suppliers in UK, energy companies would not be able to invest millions on smart meters if they are going through losses due to energy price capping. British Gas and E.On Energy submitted a report to the Business, Energy and Industrial Strategy (BEIS) committee which stated that “We believe the price cap will damage the roll-out of smart meters and may reduce the total number of meters installed.” British Gas pointed out that if the energy price cap is marked too low then gas and electricity suppliers would not be able […]

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As Npower plans to exit the UK energy market, reports suggest that its parent company Innogy has suffered losses of £427m due to the pressure building up in the UK home energy market. Npower, the Big Six gas and electricity supplier suffered a loss of £96m this year and is feeling the pressure of the government’s energy price cap initiative. Being a Big Six supplier, it has been blamed for not offering cheaper energy deals to the domestic energy customers. Prime Minister Theresa May has announced an energy price cap, which is expected to be implemented from winter 2018. As per the declaration, price capping would be on the Standard Variable Tariffs offered by the UK gas and electricity providers. By shifting the customers on SVT, the Big Six close all doors of cheap energy bills for its customers. Npower also faces stiff competition from the new energy suppliers that […]

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The Big Six energy supplier British Gas lived up to its words and has kicked out Standard Variable Tariffs for its nwww ew customers. According to energy experts, the announcement that will come into effect from April 2018 is a result of the government’s constant pressure to apply energy price cap on SVTs. The Big Six gas and electricity providers were already under scrutiny for earning huge profits from customers on Standard Variable Tariffs and a cap on it was the most obvious solution to combat energy price rises and to dismantle the monopoly of the Big Six suppliers on the energy market. Although, the energy price cap is expected to come in effect from winter 2018 the announcement has shook the energy market especially the Big Six energy suppliers. There was a strong opposition for the energy price cap from the Big Six suppliers but the government seemed unperturbed. […]

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Political interference in the energy sector and the government’s threat of energy price cap is taking a toll on the Big Six energy suppliers. So much so that two of the biggest of the Big Six gas and electricity suppliers, SSE and Npower considered quitting the energy market. If reports are to be believed then UK’s energy giant SSE is discussing a spinoff with Npower to create a new giant energy company that can sustain the seismic changes in the energy sector. This is the result of the recalling of the announcement of energy price cap made by the Prime Minister Theresa May. Supported by ministers and Ofgem, the energy price cap is a remedy to free the 12 million energy customers on Standard Variable Tariff. During energy price rises, these customers suffer the most and thus, need to be protected. Energy price cap is one such measure that will […]

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German Energy group Innogy, the owner of Npower, hints at selling the business to combat the losses and years of cost cutting. At the least, it would form partnership with another giant rival company like SSE to make sure that its British retail energy business is up and running. As the Big Six energy suppliers are not willing to offer cheaper energy deals, they are in line to face the energy price cap in the near future. This may incur them huge losses and so, giants like Npower hint at quitting the UK energy market. A source from the company said that “Management is no longer willing to accept the losses. A partnership is the only thing that makes sense.” However, Innogy chose to remain silent on the matter. The Big Six energy provider has 4.76 million customers in the UK and incurs a business of 8.1 billion Euros. This […]

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Amidst the announcement of an energy price cap by Theresa May, it was the energy regulatory body chief who suggested that the UK energy market needs price capping for around 15 years to balance. He expressed his views about the vulnerable and low-income customers who need to be protected from power suppliers till 2030. His remarkable comments were made towards the MPs and hinted that price capping needs to be extended considering the slow pace at which energy giants are taking steps to save energy customers from getting ripped off. Ofgem chief Dermot Nolan clarified to the MPs by saying that “Given the importance of energy, heat and light, my own sense is that even 10 to 15 years from now there will be a need to include vulnerable people in some form of safeguard tariff.” He also mentioned that Ofgem cannot launch a nationwide energy cap in the absence […]

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There were string reports surrounding the confirmation of Ofgem’s immediate action to implement the latest announcement of the government on the revival of energy price cap for the 12 million customers on the Standard Variable Tariffs. The energy price cap was supposed to be monitored by Ofgem under the proper legislation however the energy regulator confirmed that the implementation of the energy price cap is possible only in the next winter. Until next winter Ofgem will price cap for around 1 million vulnerable customers suffering from low income. They said that these households will save up to £120 a year on their dual fuel energy bills. As per the energy regulator the so called safeguard tariff would come into effect from February. It stated that “This will provide some short-term relief for vulnerable customers ahead of government plans for an energy price cap being realized.” The energy price cap by […]

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