Overview

This bill concerns the regulation of domestic gas and electricity tariffs in the UK. Instead of imposing a permanent cap on tariffs, the Commons' amendment focuses on reviewing pricing practices after a temporary cap expires to ensure ongoing protection for vulnerable consumers and prevent excessive price differences.

Description

The original Lords amendment proposed a permanent "relative tariff differential" after a temporary price cap ended. This would have limited the difference between the cheapest and most expensive standard tariffs. The Commons rejected this and proposed a replacement focusing on post-cap reviews.

The Commons' amendment mandates that the relevant authority (Ofgem) conduct reviews of gas and electricity pricing practices before and after the temporary price cap ends. These reviews must assess whether certain customers (particularly those on standard variable or default tariffs) are paying excessive amounts. The reviews will specifically address whether vulnerable customers need extra protection after the temporary price cap is lifted.

If the reviews find that protection is needed, the authority must take appropriate action using existing powers under the Gas Act 1986 and Electricity Act 1989.

Government Spending

The bill doesn't directly specify government spending. The cost of the reviews and any subsequent protective measures implemented by the authority will be factored into Ofgem's budget, potentially impacting indirect government expenditure. Specific figures are unavailable from the provided text.

Groups Affected

• Domestic energy customers: Will be affected by price changes during and after the tariff cap. Vulnerable customers may receive additional protections.
• Energy suppliers: Their pricing practices will be subject to increased scrutiny and potential regulatory action.
• Ofgem (the energy regulator): Will be responsible for conducting the reviews and potentially implementing new regulations, increasing their workload and resources needed.

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