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PM's promised energy price cap will expire in 2020

PM's promised energy price cap will expire in 2020

Business
The Prime Minister's cap on energy prices to protect households from rip-off bills will be a "temporary measure", it has been revealed.In a statement to financial markets, ministers revealed their plans to publish a draft law later on Thursday to cap energy prices for those on a standard variable tariff and other default tariffs.But the law will expire in 2020, it was disclosed."The cap would be a temporary measure, having effect initially until the end of 2020," the statement added."The need for it would be kept under review, and extensions could be made, on the advice of Ofgem, up to the end of 2023 at the latest."If passed, the proposed legislation would force regulator Ofgem to impose an "absolute cap" as soon as possible.Video:4 October - Key announcements in May's speech overshadowed...
No energy bill price cap this winter, Ofgem says

No energy bill price cap this winter, Ofgem says

Business
A price cap on energy bills proposed by the prime minister last week is unlikely to take effect before winter.Theresa May had vowed to revive a plan to cap charges for an extra 12 million consumers.However, Ofgem said it would have to wait for legislation to be in force before it could take action on standard variable tariffs.Until then a more limited price cap will cover another one million low income households, the regulator said.That move will, on average, save households £120 a year, the regulator said.Last week Business Secretary Greg Clark said a gas and electricity price cap could be imposed as early as this winter should Ofgem decide to use its powers.Media playback is unsupported on your deviceThe BBC understands that Ofgem is reluctant to do so because it believes energy compani
Energy prices could be capped this winter, suggests minister

Energy prices could be capped this winter, suggests minister

Business
A cap on gas and electricity prices could be introduced as early as this winter, Energy Minister Greg Clark has suggested.He told the BBC that the energy regulator Ofgem would receive legal backing from parliament for action on prices.Asked if this could mean action this winter, he replied: "Precisely."But the boss of British Gas-owner Centrica, Iain Conn, warned that price caps could mean the end of cheap deals.On Wednesday, Prime Minister Theresa May revived plans to cap prices, something that was promised in the Conservative's election manifesto but was absent from June's Queen's Speech.Her statement was followed by sharp falls in energy company share prices. But Thursday trading saw a partial recovery, with most up by 1% or more.Mr Clark told the BBC's Today programme: "If they [Ofgem]...
Backlash as PM vows to cap 'rip-off' energy bills

Backlash as PM vows to cap 'rip-off' energy bills

Business
The Prime Minister is facing a backlash from the energy sector and the country's biggest business lobby group following her pledge to cap "rip-off" bills.Theresa May used her Conservative conference speech - overshadowed by a bad cough and a comedian's stunt - to say the Government planned to carry out its earlier threat of action to fix the "broken energy market".She had earlier called on the party faithful to "defend free and open markets with all our might".But the PM said: "We will always take on monopolies and vested interests when they are holding people back... the energy market punishes loyalty with higher prices and the most loyal customers are often those with lower incomes - the elderly, people with lower qualifications and people who rent their homes."Those who, for whatever re...
Texas energy sector okay after Harvey, Fed survey finds

Texas energy sector okay after Harvey, Fed survey finds

Business
Sept. 28 (UPI) -- Respondents to a survey from the Federal Reserve Bank of Dallas said Hurricane Harvey should have only a modest, but lingering, impact on the energy sector.Hurricane Harvey hit the southern coast of Texas and the largest density of refineries on the southern Gulf Coast in late August. By now, all of the refineries are back in service, though eight are still operating at reduced capacity. Around 15 percent of total U.S. refining capacity was impacted by the storm at the peak.About half of the respondents from 143 energy companies to a survey from the Dallas Fed said they expected minor impacts on their business activity from Harvey."Respondents reported widespread but generally limited impacts on their operations due to Hurricane Harvey, and most believe these effects will...