Submission: Pre-legislative scrutiny of the draft Domestic Gas and Electricity (Tariff Cap) Bill

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on Nov 30, 17 • posted by

Submission: Pre-legislative scrutiny of the draft Domestic Gas and Electricity (Tariff Cap) Bill

Written submission from the University of Exeter Energy Policy Group to the Business, Energy and Industrial Strategy Committee’s inquiry on Pre-legislative scrutiny of the draft Domestic Gas and Electricity (Tariff Cap) Bill.

Submission from Catherine Mitchell, Energy Policy Group, University of Exeter

Summary

Price caps are complex, and the issue has become very political in GB.

In principle, we do not like the idea of price caps.

However, we accept that given the political nature of the discussion that a temporary, absolute price cap should be set by Ofgem for prepayment meter customers and those on the WHD.

We are less keen for a price cap on the rest of those with a SVT. Our preference for that group is either a temporary, absolute price cap but with a rising block tariff, or a levy on certain suppliers which is hypothecated for energy efficiency.

We do not see the suppliers as the key culprits of high energy prices in GB. Fundamentally, we think the ‘fault’ lies with Government. They should have done more to implement a successful energy efficiency programme for buildings, including domestic buildings. An energy efficient home will use less energy, and will have lower bills. Price itself is less important.

We think more information is needed about how suppliers make profit from different tariffs, and how much profit network companies also make. We think this data gathering should be implemented and published.

The full submission can be found here.

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