The Conservative MP who helped create the energy price cap has called for it to be reformed as, he says, it is no longer fit for purpose.
John Penrose, MP for Weston-super-Mare and husband to Baroness Dido Harding, helped devise the price cap which at one time stopped customers from being charged extortionate energy bills.
With the price cap set to rise from £1,917 to £3,549 in October, Mr Penrose called on Boris Johnson’s successor to rapidly set out how they will tackle surging energy bills.
“That would involve reforming the cap because it’s not holding down prices at all,” he told The i.
Although energy bills are set to surpass £3,000 in October, forecasters predict it will rise again to £5,287 in January and then to £6,616 in April next year. Last April, the price cap rose by £693 from £1,277 to £1,971.
“My reaction to Ofgem’s announcement was, ‘Oh my god, that’s terrible what’s it going to mean for my bills, my family’s bills, my neighbours’ bills?’” Mr Penrose added.
“My energy bills have quadrupled. I’m looking on the internet for the same money-saving tips everybody else is,”
Earlier this year the Government introduced the Energy Bill Support Scheme which will provide £400 to all UK households over six months.
In addition, however, current Chancellor, Nadhim Zahawi has hinted at a Covid-style support package for businesses will be introduced under the new prime minister.
Mr Zahawi insisted more help is “on the way” for households this autumn amid surging living costs.
He said: “We know we need to do more because actually the most vulnerable households have no cushion.
"More help is on its way I am doing the work to make sure that will be in place throughout next year."
