A former chief executive of Npower has predicted the new Government will go ahead with the threat of an energy price cap.
Speaking to Utility Week, Paul Massara who is now chief executive of North Star Solar, said he believes the new minority administration are “going to push on the cap and I think they will want to move on that quite quickly”.
But he warned there are still questions about how ministers will be able to get it through parliament.
“With the agenda for Brexit on, it will push the legislative timeframe out for everything else. Unless it is an absolutely core manifesto pledge, then it will not get done.
“There’s also a question about how fast they can do this. There will need to be some consultation and Ofgem will need to look at that.
“They could take the prepayment cap structure, but they will need to think about who it applies to now.”
His comments come after business and energy secretary Greg Clark told Utility Week the government is looking to set an absolute cap.
Massara added there are also questions about how the Conservative’s promised energy price review will work.
“How does that fit in with the energy cap, decisions on energy insulation and who pays for it? Those things will have to be worked out together. What we don’t want to be doing is waiting for another report in 12 to 18 months before some of these policies get enacted.
Massara added he can see issues like energy efficiency and insulation moving forward, but “some of the more contentious messages will be difficult”.
“Another big question is what will they do with the winter fuel allowance?” he told Utility Week. “I think it’s the right thing to do and target the people who need it the most, but whether they get cross-party support for that now is an interesting question.”
“In addition the independent energy price review will be starting which could have a significant impact in the longer term,” he added.
“Whoever is appointed to chair this review should therefore be independent and able to command the confidence of industry.”