British PM May vows energy price cap if re-elected

Tory business secretary defends energy price cap plan
Energy prices could still go up under Theresa May's price cap plans, admits Business Secretary Greg Clark
Author

10 May, 2017

The Conservative leader vowed to place a cap on standard variable tariffs to remove the "injustice" of soaring energy costs.

Theresa May has admitted that electricity and gas bills could still go up under a energy price cap scheme proposed by Conservatives.

Tory bigwigs were tripping over each other before the 2015 election to pan Labour's price cap.

When the freeze was unveiled in 2013, then Conservative leaders including Prime Minister David Cameron described the policy as "dangerous" and "Marxist".

Rather than copy the "madness of Labour policy" by trying to buck worldwide markets, the level of the cap "should be determined by inspecting the wholesale prices", he said.

Analysts at RBC Capital Markets said the main reason for Tuesday's share price reaction was that May said the cap would apply to all standard tariffs, rather than just those customers deemed as vulnerable, as previously expected.

Energy bills have doubled in Britain over the past decade to about 1,200 pounds ($1,553.40) a year, angering consumers who face rising inflation and muted wage growth, and drawing the ire of politicians ahead of the national election.

"When the Tories say they'll "cap" bills, the question they need to answer is whether they can guarantee bills won't go up for people next year - that's the real test".

New 'Blade Runner 2049' Teaser Trailer is Bleak AF
If this tiny footage is any indication, this Blade Runner might be a way grittier than the original and a lot more aggressive. In the trailer tease, we see Robin Wright's character saying that there is an order to things.

Israeli Missile Shoots Down Syrian Aircraft That Crossed Border
The state's intelligence minister, Israel Katz, confirmed that such a raid would comply with government policy. Reuters cited Syrian rebel sources and other regional sources as saying Israel was responsible for the attack.

World Video Game Hall of Fame to announce class of 2017
With " Pokémon Go" dominating 2016, Pokémon remains just as culturally present today as it did in 1996. All of these games will be on permanent display at The Strong museum in Rochester, New York.

The proposed Tory cap would be introduced on standard variable tariffs, which around 70% of households are on.

Theresa May has decided that an energy cap fits her political objective and has confirmed she will wear it into this election campaign. "Is that right? Asking for a friend", he taunted the business secretary, Greg Clark, on Twitter.

Iain Conn, the chief executive of British Gas owner Centrica, which saw its share price slide 1.58% on Tuesday after the policy was confirmed, suggested there might yet be some sops for the industry when the final detail was revealed. The energy industry has argued that a price cap will wipe out competition and force companies to increase the cost of their lowest tariffs. Crucially, it will be possible for that cap to move, and the independent regulator will set it.

"We have to remember we haven't actually seen the policy yet, as someone senior in government reminded me not so long ago, so we have to keep a cool head", he said.

"Instead of bringing in a price cap, the Government should spend some money raising awareness of switching and leave the mechanics of an increasingly vibrant and competitive market well alone".

"Further intervention risks undermining so numerous positive changes we are seeing in the market which are delivering benefits for consumers".

"As the Conservatives pointed out at the time, this will damage investment in energy when it is needed more than ever", he continued.

The Confederation of British Industry, which represents the country's biggest companies, also voiced concern, saying a "major market intervention" could hit investor confidence.


More news


  • Trump signs executive order to promote religious liberty

    The group wants the court to declare that it gives preferential treatment to churches and halt the IRS from implementing it. The American Civil Liberties Union is not that anxious about President Trump's new "religious liberty" executive order.

    Boxing in fantastic shape after Joshua triumph - Hopkins

    And Klitschko, you've got to give credit to him. "I like that he's patient, too, he's like Frank Bruno but on steroids (sic)". Boxing has been struggling to find a new heavyweight champion who can captivate a worldwide audience for years.
    Turkey threatens further strikes on US-allied Syrian Kurds

    Turkey threatens further strikes on US-allied Syrian Kurds

    The fighters believe this to be the case due to the fact that it has a common enemy with ISIS, the YPG (People's Protection Unit). Retaking the dam is considered a vital step toward further isolating the area around Raqqa and eventually recapturing the city.
  • LUPICA: Victory meant more to the GOP than the health of millions

    LUPICA: Victory meant more to the GOP than the health of millions

    Former President Barack Obama speaks after being presented with the 2017 Profile in Courage award during ceremonies at the John F. What seemed to matter the most, and to the guy out front, was that they had finally put some legislative points on the board.

    Government needs a good shutdown, tweets frustrated Trump

    Those numbers are subject to change as the White House and House leaders pressure rank-and-file lawmakers to back the legislation. A vote was expected as early as midday Thursday, with lawmakers planning to leave town later that day for a week-long recess.
    Motorola might be working on a new tablet

    Motorola might be working on a new tablet

    It's been long we have seen a decent tablet and that is mainly because of how tablet market has been deteriorating with time. The Productivity Mode also moves all of the Android navigation buttons to one side of the screen, for easier thumb access.
  • McDonnell: Labour Will

    McDonnell: Labour Will "Come Out Fighting" From Historic Council Election Loss

    Former UKIP leadership candidate Lisa Duffy admitted that the elections had been "very challenging" for her party. Liberal Democrats had a poor election, failing to break through against the Tories in south-west England.

    Wisconsin-based atheist group sues Trump over church order

    Although a president can not actually repeal the regulation, his act may encourage some churches to engage in partisan politics. Noting the importance of religious liberty, he explained the targeted regulation "is not a threat to religious liberty".

    Trump makes puzzling claim about Andrew Jackson, Civil War

    And frankly it should be discussed. "So we're looking at that, and we're also looking at the potential of going to Saudi Arabia". In a separate interview Monday night, Meacham, who wrote a biography on Jackson, called Trump's comments "disturbing".
  • 5 things we learned from the Premier League this weekend

    5 things we learned from the Premier League this weekend

    You think I enjoy a big club like Arsenal not winning big trophies? "We had just one blip but overall we look a bit more stable". Mourinho made eight changes for the match ahead of United's Europa League semi-final second leg against Celta Vigo on Thursday.
    Now Barcelona's Neymar has to stand trial for fraud

    Now Barcelona's Neymar has to stand trial for fraud

    The club also admitted that it paid nearly 100 million euros for Neymar , not the 57.1 million euros it originally claimed. His arrival from Santos has been a huge success for the Spanish champions on the pitch but a judicial nightmare off it.
    Director Krish and Kangana Ranaut's Manikarnika will be announced today

    Director Krish and Kangana Ranaut's Manikarnika will be announced today

    My life has come full circle and before this, no amount of success and failure could make me feel like an achiever. The trio even performed a power packed number along with singer Richa Singh to a poem penned by Prasoon Joshi.