BEIS Committee to question Claire Perry over Westminster's tariff cap

The Business, Energy and Industrial Strategy Committee was set to question Claire Perry, minister for energy and clean growth, on Downing Street's proposed energy price cap, continuing its pre-legislative scrutiny of the tariff cap bill's draft.

Shares in Britain's utilities sector had slid almost a third against its European counterparts after the Labour party proposed "regaining control of energy supply networks" and replacing the "dysfunctional water system" back in May 2017.

The Tory tariff cap bill, which was expected to place more than half of UK households on price caps, could lead to profit margins at energy suppliers falling from around 7% to nearer 5%, according to analysts at Credit Suisse who pointed out that the market is currently pricing in margins to crash to as low as 1.5%.

The Committee had been approached by several energy companies regarding the impact of the proposed caps to their bottom lines and intended to approach the minister about the provisions of the bill, and how it aimed to protect vulnerable users.

Rachel Reeves, chair of the Business, Energy and Industrial Strategy Committee, said, "This Committee has pledged to examine thoroughly the draft legislation to ensure it can deliver on the Government's pledge to secure fairer bills for consumers."

"We'll be using this session with the Minister to explore some of the criticisms of the Bill we have heard from energy companies and to test the Government’s commitment to breaking down some of the barriers that make it difficult for consumers to switch suppliers," Reeves added.