UK Government Wants to Extend Energy Price Caps Beyond 2023
July 23 2021 - 3:43AM
Dow Jones News
By Jaime Llinares Taboada
The U.K. government said Friday that it intends to extend the
energy retail price cap beyond 2023.
Anne-Marie Trevelyan, minister for energy, said in a letter that
there is a substantial risk that millions of consumers will be
exposed to excessive charging if the price cap expires before
conditions for effective competition in the energy retail market
are in place.
The current law allows for the price cap to be extended up to
the end of 2023 at the latest. Ms. Trevelyan said extending it
beyond that date will ensure consumers are protected.
In addition, the government has published a consultation on
testing of opt-out switching, in which consumers on costly tariffs
would be automatically switched to cheaper ones. This is designed
to tackle the so-called loyalty penalty, and trials are planned to
take place in 2024.
Shares in Centrica PLC, the owner of British Gas, at 0804 GMT
were down 1.4% at 48.61 pence. Telecom Plus PLC, another energy
retailer, is flat at 1,030 pence.
Write to Jaime Llinares Taboada at jaime.llinares@wsj.com;
@JaimeLlinaresT
(END) Dow Jones Newswires
July 23, 2021 04:30 ET (08:30 GMT)
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