Energy bosses to be grilled over price cap

Bosses from Eon, Centrica and SSE will be questioned by MPs next week over the government’s plans to cap energy prices.

Senior figures from the energy sector will appear in two sessions before the business, energy and industrial strategy (BEIS) select committee on 19 December.

In the first session, the chief executive of Eon in the UK, Michael Lewis, will appear, along with First Utility’s chief commercial officer, Ed Kamn and Stephen Forbes from SSE.

The second session will see representatives from small and medium-sized energy companies, Bristol Energy’s chief executive, Peter Haigh, Bulb’s co-founder, Hayden Wood and the managing director of Ecotricity, Patrick New.

The committee is currently examining the Government’s draft Domestic Gas and Electricity (Tariff Cap) Bill and will be holding evidence sessions this month and in January, before producing a final report.

The session is likely to examine suppliers’ views on the impact that price controls will have on their capacity to operate efficiently and innovate.

The session is also likely to explore the recent announcements made by big suppliers regarding standard variable tariffs (SVTs), the positions of small suppliers on the Bill, and concerns about loopholes in the draft legislation, including the exemption of “green” electricity tariffs, which may leave consumers unprotected.

“It’s increasingly clear from our evidence that there is a lack of progress in tackling the issue of SVTs and that more needs to be done to reduce consumer bills,” said committee chair, Rachel Reeves.

“On Tuesday, we will have the opportunity to question some of the big energy companies, who oppose an energy price cap, and also quiz medium-and-small energy companies on the government’s proposals,” added Reeves.

“As a committee, we will be determined to play our role in ensuring this draft bill is as effective as it can be in delivering on the government’s promise to deliver lower energy bills for consumers.”