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Price Cap – Letter to Big Six

This government is committed to ensuring the energy market works for consumers . We are
working to develop a new, improved retail market that works better for consumers and
businesses. Value, choice, and excellent customer service should be at the heart of this, and
sadly it is evident that for many consumers, that has not been the case.

The Tariff Price Cap Bill, which will protect consumers from unfair standard variable tariffs, is
due to complete its passage through Parliament shortly. The Bill, a manifesto commitment,
has enjoyed strong cross-party support in the House of Commons and the Government
expects industry to work with Ofgem and the Government to ensure the cap is in place as
quickly as possible. The Government will strongly condemn any efforts to frustrate the
process of putting the cap in place. Digging in to defend a hold on legacy customer groups
and out of date practices, rather than embracing change, will only harm loyal customers,
particularly older people and hard-working families, and risks damaging the reputation of the
whole sector.

As you know, the energy market is embarking on an exciting upgrade, driven by innovation
and increased competition. Consumers will feel the benefit through imaginative new
tariffs, service offerings and digital technologies delivering greater control and value. I look
forward to meeting you again in the near future to discuss these exciting developments and
look forward to working with you constructively to implement the cap.

Yours sincerely,

THE RT HON CLAIRE PERRY MP


Minister of State