Tuesday 5 December 2017

Price cap loophole ‘could see £700m in overpayments’

More than seven million households across the UK could be excluded from the government's proposed energy price cap as a result of a legislative loophole.

That's according to green energy supplier Bulb, which says green tariffs are currently exempt from being limited.

It says this will allow suppliers to charge more if they can prove a customer's energy deal provides a benefit to the environment.

When Prime Minister Theresa May pledged to cap prices, she estimated cost savings per customer to be as much as £100 - Bulb claims the loophole could see the UK public overpay by as much as £700 million.

The firm has written to MPs on the BEIS Select Committee, calling for the loophole to be closed.

Bulb Co-Founder, Hayden Wood, said: "This needs to be fixed immediately.

"We believe a price cap would help customers and the industry but it must apply to everyone and not allow for spurious exemption claims."