Trade Secretary Quasi Quarteng has promised that the price range will remain in place this winter amid pressure from energy companies.
Mr Quarteng said the UK would not run out of gas this winter and that maintaining an energy cap was “non-negotiable” as some firms raised wholesale gas prices to prevent price increases.
Heavy industry leaders have warned that factories will shut down production if rising gas prices are not brought under control. Current wholesale gas prices are £2.50 per therm, while the price range puts domestic consumer prices at 65p per therm.
Boris Johnson flew to Marbella to vacation in a private villa on the Costa del Sol, amid the growing uncertainty of the energy crisis.
Downing Street did not deny reports that he had traveled to Spain, and declined to say whether the prime minister was working at Number 10 or at Checkers, as is common.
“We have a safety net in place to protect consumers from immediate price increases this Christmas, and ensure everyone gets the supplies they need,” Mr Quarteng said. Sunday Express.
“Because it’s always my first, main concern,” he said. “Protecting consumers and especially those on low incomes. Despite some people pushing me to lift the hat, I am quite clear that this is here to stay and will remain at the same level throughout the winter.
Energy suppliers on Saturday criticized the energy price cap, saying it would not protect homes from the expected increase in costs.
Paul Richards, chief executive of Together Energy, which he said was currently running at a loss, told BBC Radio 4. Today Program: “The price range as a mechanism is not industry-appropriate, nor is it appropriate for the customers.
Energy regulator Offgame also said that customers can expect a “significant increase” in energy prices this April.
Mr Richards said the energy cap protected customers in the short term, but failed suppliers had resulted in between £1bn and £3bn in costs that would be placed on businesses and homes.
Derek Licorish, non-executive chairman of Utility Energy, said: “The cap is not fit for purpose.
“There is no doubt that there will be a huge cost to be paid by customers for failed suppliers … certainly more than £100 million for every 200,000 customers who fail.
“The government will have to find means by which they can support not only energy suppliers but also large industries.”
Despite talks with Business Secretary Quasi Quarteng on Friday, industry leaders have said there was no immediate solution or commitment.
Credit: www.independent.co.uk /