A price cap done wrong can do more harm than good
In her speech today at Conservative party conference, Theresa May announced a draft bill that would give Ofgem full power to impose a widespread energy price cap. Here's what Martin Lewis, founder of MoneySavingExpert.com and cheapenergyclub.com has to say about her proposals. It’s a national disgrace that a struggling 90 year-old granny pays substantially more to boil a kettle than an affluent web-savvy man like me. However a price cap done wrong can do more harm than good. Some in the Tories have called for a ‘relative’ price cap – which means a firm's most expensive price can only be a set percentage more than the cheapest. That’s self-defeating – it means they’ll just withdraw cheap deals.
