Union questions the fit for purpose role of price cap amid energy crisis

GMB calls on the government to take urgent action as more energy suppliers go under

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While the UK’s energy market is already being hit hard by the ongoing crisis with many suppliers going under because of soaring gas prices, the GMB union is asking if the price cap is still fit for purpose.

Andy Prendergast, GMB National Secretary, said: “With more and more energy companies going bust, it’s time the government took the steps necessary to reassure workers and consumers.

“The current system is simply not working, with too many entrants to the markets proving unable to deal with the price shocks of the last month.

“This exacerbates an ongoing problem with significant price fluctuations exposing the lack of gas storage, leaving the UK highly vulnerable.

“Ministers need to get a grip on this before the situation gets out of control. We need to look at whether the price cap is fit for purpose and ask what extra steps can be taken to provide certainty to staff and consumers.”

A BEIS spokesperson said: “The Energy Price Cap will remain in place to protect millions of customers from sudden increases in global gas prices. When suppliers do cease trading, we have a clear, well-rehearsed process in place to make sure customers are protected and supply is not interrupted.

“The Business Secretary has been in regular contact with Ofgem and has been engaging with leading and smaller energy suppliers to understand the challenges they currently face and to explore ways to ensure we best protect consumers.

“As we have stated previously, recent international wholesale gas market activity illustrates that domestic gas storage capacity has had little bearing on the price of gas.”

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