Overview

This bill, the Domestic Gas and Electricity (Tariff Cap) Bill, focuses on protecting domestic energy consumers from excessively high energy prices. Instead of imposing a permanent cap on energy tariffs, the bill mandates post-cap reviews to identify and protect vulnerable customers from potentially exorbitant charges after the initial cap expires.

Description

The bill initially proposed a relative tariff differential, limiting the gap between the cheapest and most expensive standard energy tariffs. However, the House of Commons rejected this and instead introduced a new clause focusing on post-cap protection.

Post-Cap Protection

This revised clause directs the relevant authority (likely Ofgem) to conduct reviews before and after the tariff cap expires. These reviews will assess energy pricing practices and identify customers vulnerable to excessive charges, particularly those switching from fixed-term to standard variable tariffs. If vulnerability is identified, the authority must take appropriate action under existing gas and electricity legislation.

The reviews will specifically consider:

• Customers facing excessive tariff differentials after fixed-term deals expire.
• Customers deemed vulnerable due to financial or other circumstances.

Government Spending

The bill doesn't directly specify government spending. The cost will depend on the resources the authority allocates to conducting the required reviews and implementing any subsequent protective measures. No figures are provided in the bill text.

Groups Affected

The bill primarily affects:

• Domestic energy consumers: The bill aims to protect them from high energy prices, particularly vulnerable consumers.
• Energy suppliers: Suppliers will need to comply with reviews and potential subsequent regulations to prevent excessive charges.
• Ofgem (or the relevant authority): This body will be responsible for conducting reviews, assessing risks, and taking action to protect consumers.

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