June 8th General Election: Conservative Party Plan to Cap Household Energy Prices
The Conservative Party is reportedly planning to cap household energy prices as part of its manifesto.
Work and Pensions Secretary Damian Green reportedly said the party will set out a policy asking Ofgem to set a maximum price for householders on standard tariffs. Regardless of opinion as to whether this is good or bad for the energy market it is certainly another step in adding domestic market controls following the introduction earlier this month of a cap on pricing for prepayment meter customers.
So, what does this mean for business customers?
Although no regulation is set to impact the business customer there is the chance of a ‘knock on effect’ as the suppliers (The Big Six in particular) may look to recover costs from other areas of the energy market. Recently five of the big Six have announced price increases which are a reflection on recent increases in wholesale market prices but have they already factored in any risk of Government legislation to the domestic market? It is difficult to know but with the market predictions of wholesale prices rising in the future which may not be able to be passed onto domestic customers then it is likely businesses will take the brunt.
Therefore, if you haven’t secured your energy contracts to cover the rest of 2017 into 2018 then it may be prudent to ensure you lock in the most competitive prices before the June election.
To find out more information about the different types of energy contracts, contact BAS Energy.