Energy Bills Price Cap Threatened

Household energy bills are an unavoidable drain on the finances of every household. Reducing your energy bills with the installation of a smart meter may become difficult if predictions by some of the UK's largest energy firms come to pass.

Centrica in particular asserts that the proposed price cap on energy will reduce the total number of meters installed, hobbling the initiative.

The government has set out that its ambition is for every home and business in the UK to have a smart meter installed by 2020 (Adam Vaughan, Guardian, December 2017).

Centrica, E.ON and the other four of the UK's "Big Six" have warned that investment in the sector could be reduced if some aspects of the energy cap legislation are not changed.

The current draft legislation does not allow energy firms to appeal to the UK's competition watchdog which is not standard practice according to ScottishPower.

According to business groups, smaller energy firms may be locked out of the only appeals process, judicial review due to the high costs of this type of appeal, a sentiment that was echoed by Co-Op Energy, a small energy provider.

MPs, consumer groups and other smaller suppliers however, have backed the price cap. The chairperson of the committee, Rachel Reeves MP says that "The government needs to act to stamp out energy companies exploiting loyal customers...It will come as little surprise to these customers companies oppose a price cap which could reduce consumer bills".

Whatever the final outcome, reducing your household bills is an important part of your personal financial journey.

Contact Westminster Wealth Management today and one of our experienced financial advisers can go through your personal financial situation with you, identifying the important expenses while shining a light on those that may be sapping your future wealth.

The value of investments and income from them may go down as well as up and you may not get back the original amount invested.

Information is based on our current understanding of taxation legislation and regulations which is subject to change.