The government has warned energy companies it is still prepared to legislate for an energy price cap, after British Gas announced a 12.5% electricity price rise for more than 3m households.
The increase would add £76 to a typical annual electricity bill, and some experts warned that it could kick start a new round of price rises from the so-called Big Six energy companies.
A senior government source said Ofgem had to act fast to safeguard poorer consumers and had the powers to do so – and repeated warnings that the government would be forced to legislate if the regulator’s proposals were inadequate.
“It’s never been off the table, but Ofgem has the power to make the reforms and can move quicker than legislation. But we will legislate if it comes to it,” the source said.Note the "if it comes to it". How much more justification do they need to implement the price cap promised in the Tory manifesto?