Energy price cap needs to be changed, says Scottish Power boss

Asia's Tech News Daily

© PA Wire Little Cheyne Court Wind Farm

Britain’s energy price cap should be changed to become more reflective of the cost for suppliers to buy energy from the wholesale market, the boss of one of Britain’s biggest suppliers has said.

The energy price cap is likely to cost the industry around £5 billion over the next six months as customers fall off their fixed-term tariffs and are moved onto a cap-regulated tariff, Scottish Power chief executive Keith Anderson said.

It will likely bring down dozens more energy suppliers and leave just a handful, maybe five or six, businesses in the market, he said.

“The impact of that, if nothing else changes between now and then, we think you could see by that time the market return to five or six companies, and you could go all the way back to a new version of the Big Six,” he said.

“I don’t think that’s in the industry’s interest, it’s not in customers’ interest, and it’s not in the interest of the regulator either.”

© Provided by Evening Standard Scottish Power chief executive Keith Anderson with Labour leader Keir Starmer (PA) (PA Wire)

At the moment, customers who are coming to the end of their one-year fixed-term energy deal with Scottish Power or another supplier are being rolled onto the price cap, currently set at £1,277 for the average household.

But gas prices have increased a lot in recent months, meaning the cost for suppliers to buy that energy is now higher than the price they charge.

When a household rolls onto the default tariff an energy supplier will buy their energy a year in advance, something which will cost them around £1,000 per customer.

Change is needed to the price cap, Mr Anderson said. But there has been little movement from officials, despite many meetings.

He added: “Our view would be the price cap should be changed at least quarterly, perhaps more frequently depending on the market conditions.

“And the price cap has to catch up with the reality of the cost, and the supply cost of gas and electricity, more quickly than it currently does.”

Regulator Ofgem said: “Ofgem is working closely with Government and industry to ensure that customers remain protected. We have robust systems in place to ensure this.

“The price cap will remain in place this winter to protect millions of people from the sudden increases in global gas prices.

“We are also working with Government to ensure that we have a sustainable energy market that works for all customers.”

Register now for one of the Evening Standard’s newsletters. From a daily news briefing to Homes & Property insights, plus lifestyle, going out, offers and more. For the best stories in your inbox, click here.

Internet Explorer Channel Network
Asia's Tech News Daily
News Related

OTHER NEWS

CNN 10 - November 29, 2021

November 29, 2021 Scientists have identified a new variant of Covid-19, but it’s too soon to tell if it will spread like previous versions. American consumers return to in-person shopping, ... Read more »

Edmonton small businesses hope to drum up more in-store sales as many shop online for Cyber Monday

Many Edmontonians will be busy scouring the internet Monday to take advantage of Cyber Monday deals. © Chris Chacon/Global News Image of Wish List Gifts owner wrapping items. But while ... Read more »

Military service members face deadline to get COVID-19 vaccine

Thousands of American service members are facing disciplinary action — up to dismissal —  if they are not fully vaccinated against COVID-19 by Monday © Getty soldiers generic With vaccination ... Read more »

Singapore, Malaysia reopen busy land border for vaccinated travellers

SINGAPORE (Reuters) – Singapore and Malaysia re-opened one of the world’s busiest land borders on Monday, allowing vaccinated travellers to make the crossing after nearly two years of closure due ... Read more »

Shares of Macau casino operator Suncity suspended -HKEX

© Reuters/Bobby Yip FILE PHOTO: A logo of Macau junket operator Suncity Group is seen at a gaming fair in Macau HONG KONG (Reuters) – Shares of Suncity Group Holdings ... Read more »

Jio joins Voda Idea & Airtel in raising tariffs

© Provided by The Times of India NEW DELHI: After Bharti Airtel and Vodafone Idea, India’s largest mobile operator Reliance Jio on Sunday announced up to 21 per cent hike ... Read more »

Much at stake for India as WTO talks lose steam

© Provided by The Financial Express Following persistent attack by the US on countries, including China and India, for “self -designating” themselves as developing nations at the WTO to enjoy ... Read more »

Accor re-hires third of 1,500 laid off employees

© Provided by The Times of India NEW DELHI: After a strong recovery since the second wave of Covid, French hospitality major Accor Group says it has started re-hiring employees ... Read more »

Punjab: Mohali MC puts up notices to warn people against unapproved Kharar housing projects

© Provided by The Indian Express After the fleeing of Gupta Builders and Promoters Private Limited (GBP), the district administration and the local bodies department have asked people to check ... Read more »

Covid positive Czech President Milos Zeman appoints new PM from inside a plexiglass cubicle

© Provided by Zee News Czech President Milos Zeman appointed the leader of a centre-right alliance Petr Fiala as prime minister on Sunday in a ceremony he performed from a ... Read more »

Glentoran boss Mick McDermott not giving up hope that Robbie McDaid will stay at Oval

Glentoran boss Mick McDermott insists he hasn’t given up hope that Robbie McDaid will sign a new contract and commit his immediate future to the Big Two giants. He also ... Read more »

Mark Allen says he will turn his phone off to avoid pulling out of the UK Championship

Mark Allen says he will turn his phone off to avoid potentially pulling out of this week’s UK Championship. It comes after the former Masters champion revealed that he’s “one ... Read more »

Paytm's core parameters improving, widening loss remains a concern

ET Intelligence Group: One97 Communications, which provides payment and financial services on the digital platform under the Paytm brand, reported a strong sequential and year-on-year revenue growth for the September ... Read more »

Binky Felstead looks chic as she launches her fashion edit with Very

© Provided by Daily Mail MailOnline logo She rose to fame on the Chanel 4 reality TV show Made In Chelsea. And Binky Felstead‘s career is going from strength to strength ... Read more »

Ralf Rangnick backed to sign Solskjaer's former transfer target for Manchester United

© Provided by Metro Rene Meulensteen and incoming Man Utd caretaker manager Ralf Rangnick (Pictures: YouTube/Getty) Former Manchester United coach Rene Meulensteen has backed incoming caretaker manager Ralf Rangnick to ... Read more »

Doctor Who Alum Matt Smith Shares Thoughts On Jodie Whittaker's Tenure And The Future Of The Franchise

© Provided by CinemaBlend Matt Smith as The Doctor in Doctor Who It’s an exciting time for the Doctor Who franchise, as Jodie Whittaker’s final full season is in full ... Read more »

Nissan Motor say to spend $17.6 billion to accelerate electrification

© Reuters/Issei Kato FILE PHOTO: The brand logo of Nissan Motor Corp. is displayed during a press preview of the company’s new Ariya all-battery SUV in Yokohama TOKYO (Reuters) – ... Read more »

‘Visionary' fashion designer Virgil Abloh dies aged 41

© Provided by Al Jazeera Virgil Abloh, men’s artistic director at Louis Vuitton, has died at the age of 41 from a rare form of cancer [File: Benoit Tessier/Reuters] Top ... Read more »

Fiji PM says 50 peacekeepers headed to crisis-hit Solomon Islands

© Charley PIRINGI The Solomons crisis erupted with three days of deadly rioting in Honiara blamed partly on poverty, hunger and frustration with government policies Fiji will deploy 50 troops ... Read more »

Man United 'stopped running for Solskjaer' claims Alan Shearer

© Provided by Daily Mail MailOnline logo Alan Shearer claimed that the Manchester United players have responded to a new voice on the training ground after caretaker manager Michael Carrick ... Read more »

Iran nuclear deal: Arms race in Middle East potentially at stake as talks resume

Hopes of the Iran nuclear agreement being taken off life support will evaporate if neither side bring serious workable offers to the table as talks resume. Read more »

Succession Casually Beat A TV Record Held By The Office For 15 Years

NBC/Peacock “The Office” is easily one of the most successful TV sitcoms of all time. Airing for nine seasons, and starring the likes of John Krasinski, Jenna Fischer, Steve Carell, ... Read more »

9th child discharged from hospital one week after Waukesha Christmas massacre

A ninth child injured in the Waukesha Christmas parade attack has been discharged from the Children’s Hospital of Wisconsin. REUTERS/Cheney Orr A ninth child was discharged from Children’s Wisconsin hospital ... Read more »

Jets' John Franklin-Myers rebounds against Texans with dominant performance

A week ago, John Franklin-Myers was the goat. On Sunday, he was the hero. Instead of having to explain his roughing the passer penalty that figured prominently in a loss ... Read more »

Inside luxurious $105M 12-bedroom mansion featured on TV hit Succession – and you won't believe who built it

EVER fancied a sneak peek into the life of the super-rich? A property featured in HBO's hit TV series, Succession, which revolves around the wealthy Logan family, has just sold ... Read more »

Sheriff's office searches for family of LA man found shot to death in Fresno County

Detectives with the Fresno County Sheriff’s Office are searching for the family of a Los Angeles man found shot to death in the city of San Joaquin. Leonel Rodriguez, 28, ... Read more »

Detective who put wife killer Joe O'Reilly behind bars says confession from lover Nikki Pelley helped nail monster for murder

The detective who put wife killer Joe O’Reilly behind bars has revealed how a confession from his lover Nikki Pelley helped nail the monster for murder. Evil O’Reilly bludgeoned innocent ... Read more »

Lucid Air DC Fast Charge Follow Up: Charging Losses Explained

© insideEvs.com Copyright Lucid Air Dream Edition No, our DC fast charging video didn’t prove the Air has a larger battery than Lucid claims. A few days ago, we posted ... Read more »

Nintendo Switch Black Friday deals 2021: Best offers on games, consoles and bundles

© iStock/The Independent The discounts are rolling in like Mario does on his bike – iStock/The Independent Black Friday is the shopping event everyone’s been waiting for, and we’re now on ... Read more »

Rebecca Woolf was going to leave her husband. Then he died.

© Getty Images Rebecca Woolf was going to leave her husband. Then he died. When writer Rebecca Woolf finally decided to end her unhappy marriage to Hal, the father of ... Read more »

Two cases of Omicron detected in England as De Gascun says there's ‘reason to be concerned'

© Provided by Extra.ie Dr Cillian De Gascun has said there is ‘reason to be concerned’ about the Omicron variant of COVID-19 as two cases of the new variant have ... Read more »

Travel from Ireland to Britain unaffected by Omicron travel ban

© Provided by Extra.ie Travel from Ireland to Britain will not be affected by the new COVID travel ban introduced over the new Omicron variant. New travel restrictions have been ... Read more »

Covid Ireland: HSE apologise after people left queuing for hours for booster jab in Dublin

© Collins Photos Queues at the Citywest vaccination centre on Sunday THE HSE apologised to hundreds of people who were forced to wait for hours to receive a Covid-19 vaccine ... Read more »

Ireland exempt from new UK travel rules requiring Covid-19 test for arrivals

© Shutterstock Viacheslav Lopatin IRISH PEOPLE TRAVELLING to the UK will be exempt from new travel rules announced by Boris Johnson yesterday. The UK prime minister said that all international ... Read more »

Woman kicked and punched on ground in disturbing video of incident in Cork city

A disturbing video shows a number of people involved in an altercation right in the middle of Cork city centre. The video shows a woman being hit by another while ... Read more »

Emmerdale spoilers: Fragile Tracy is devastated by Frankie's first word

© Provided by Metro Nate is happy – but Tracy isn’t (Picture: ITV) Tracy Metcalfe has been through the mill in Emmerdale, with some astonishingly raw performances from Amy Walsh ... Read more »

Gordon Ramsay overwhelmed with pride as he reflects on daughter Tilly's Strictly exit

Gordon Ramsay was left overwhelmed with pride as he reflected on his daughter Tilly’s journey on Strictly Come Dancing. The TV chef took to Instagram on Sunday night to pay ... Read more »

UPSC Civil Services aspirants sit on indefinite strike in Delhi, demand extra attempt

© Provided by Zee News New Delhi: Demanding an extra attempt to appear for the exam, Union Public Service Commission (UPSC) Civil Services aspirants sat an indefinite agitation at Delhi`s ... Read more »

Struggling to get Dyson's airwrap this Black Friday? Ghd's alternative is on sale with 20% off

The tool is designed to give your locks body and lift from root to tip (The Independent) Black Friday weekend is upon us, bringing with it thousands of deals on ... Read more »

Cyber Monday Dyson V10 Deals 2021: Best V10 Absolute & Animal Vacuum Cleaner Sales Compiled by Consumer Walk

Cyber Monday Dyson V10 deals are underway, explore all the best Cyber Monday Dyson cordless vacuum cleaner savings on this page BOSTON, November 28, 2021–(BUSINESS WIRE)–Find the latest Dyson V10 ... Read more »
On free-english-test.com you will find lots of free English exam practice materials to help you improve your English skills: grammar, listening, reading, writing, ielts, toeic