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Theresa May's Energy Price Cap Could Last Until 2037

The energy bills of 11m households will be capped for as long as five years under legislation put forward by government, which the Conservatives have said could save people up to £100 a year.

The draft energy bill compels regulator Ofgem to change the licence conditions for energy suppliers so that they are forced to cap electricity and gas prices.

The measure will apply to anyone on a standard variable tariff, the expensive plans that customers are moved to when cheaper, fixed deals end.

The cap is unlikely to take effect until the end of 2018 at the earliest, because of the legislative process and will be in place until at least the end of 2020. But Ofgem will be able to extend it until the end of 2023, if competition is not deemed to be working.

The draft legislation published on Thursday does not spell out at what price the average dual fuel bill will be capped.

An existing, limited cap for 3m vulnerable households on standard variable tariffs – due to be extended to a further 1m in Fe…

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