Inside Business

What will happen to the energy price cap?

Every customer taken on through the collapse of smaller energy suppliers costs firms £1,000 at the current level of the cap. It’s a matter of time before something gives, writes James Moore

Thursday 21 October 2021 21:30
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<p>Pricey stuff: now Scottish Power is calling for the cap to end </p>

Pricey stuff: now Scottish Power is calling for the cap to end

It’s time to scrap the energy cap, the boss of Scottish Power told the BBC, although he didn’t quite use those terms.

With smaller suppliers going bust every few days, the big guns are having to take on a raft of new customers. CEO Keith Anderson said each new one was costing his company £1,000 under the cap. He put the total cost to the industry at up to £5bn.

You probably know the background by now. A sudden spike in global gas prices has left the UK’s domestic energy sector flailing. The cap means customers are paying less for their energy than it costs to supply.

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