Draft legislation to cap energy prices is to be published today.
The Department for Business, Energy and Industrial Strategy (BEIS) said the cap would apply to households in England, Wales and Scotland on standard variable and other tariffs.
The Bill would require Ofgem to consult and impose the cap “as soon as practicable” after the legislation is passed.
The cap would be a temporary measure until 2020, however it could be extended on the regulator’s advice, up until the end of 2023 at the latest.
BEIS added: “It will be an absolute cap and in setting it Ofgem must have regard to the need to: protect customers, create incentives for suppliers to improve efficiency, enable effective competition for domestic supply contracts, maintain incentives for customers to switch and ensure efficient suppliers are able to finance their activities.”
While Energy Secretary Greg Clark previously suggested the price cap could come into effect by the end of the year, Ofgem said it would not be possible as it will have to wait for legislation to be passed before it can take action.
Energy prices will be part of the discussions at Energy Live Expo on 2nd November at the QEII in London. There are limited free tickets for energy end users.