Responding to the Conservative Party’s manifesto commitment to cap energy prices Stephen Fitzpatrick, CEO and Founder of OVO Energy, said:
“The Conservative Party’s commitment to intervene to protect standard variable tariff customers is a bold and ambitious move.
Eighteen years of light-touch regulation has not delivered an energy market that works for most customers. The standard variable tariff cap will not harm consumers or competition, but act as a catalyst for innovation and efficiency amongst suppliers. It will be painful for some companies, especially those currently taking advantage of customer disengagement, but it will offer consumers a safety net, protecting them from some of the worst practices of the industry whilst still allowing innovative suppliers to compete.
The policy of the SVT price cap is entirely different from the price freeze principle. It will set a ceiling on retail prices based on underlying market conditions, allowing headroom for efficient companies to operate profitably. It is the most efficient way to ensure customers are treated fairly.
This policy will lead to lower average prices across the industry, saving customers hundreds of millions of pounds.”