Energy price cap 'won't be scrapped', business secretary pledges amid gas crisis

21 September 2021, 08:40

Business Sec says energy price cap won't be scrapped

EJ Ward

By EJ Ward

The energy price cap will remain in place despite escalating gas prices, the Business Secretary has told LBC.

Speaking to Nick Ferrari at Breakfast Kwasi Kwarteng said that even though energy firms had called for the cap to be removed, it would stay in place.

Mr Kwarteng warned, "it's going to be a difficult time, we've got very high prices, particularly in energy."

He revealed that was the reason he wanted to "keep the energy price cap."

"I read in some of the papers today that some energy companies want me to remove the price cap and allow them to charge what price that they want, and I don't think that's acceptable."

Mr Kwarteng said the price cap would be retained and vulnerable customers would be protected.

Meat shortages imminent due to lack of CO2

Wholesale prices for gas have increased 250% since the start of the year and there has been a 70% rise since August.

Consumers are protected from sudden price hikes by the energy price cap, but this puts pressure on suppliers as they cannot pass on the increase in wholesale gas prices to customers.

The rise has been put down to a number of factors, including a cold winter leaving stocks depleted, high demand for liquefied natural gas from Asia and a drop in supplies from Russia.

More Nick Ferrari

See more More Nick Ferrari

Exclusive
‘The storm of war is gathering’: Defence cuts leave UK critically unprepared for a 'bumpy decade', warns ex-minister

‘The storm of war is gathering’: Defence cuts leave UK 'woefully unprepared' for a 'bumpy decade', warns ex-minister

Education Secretary Bridget Philipson 'hasn't changed her mind' and will vote against assisted dying bill

Education Secretary Bridget Philipson 'hasn't changed her mind' and will vote against assisted dying bill

Nick Ferrari takes to the streets of the US to ask Americans: 'Can you identify these British politicians?'

Nick Ferrari takes to the streets of the US to ask Americans: 'Can you identify these British politicians?'

Why did Trump win and why did Harris lose? Nick Ferrari asks American voters

Why did Trump win and Harris lose? Nick Ferrari asks American voters in the wake of US election results

Nick Ferrari attends his first Trump rally in Pennsylvania as he meets the crowd in 'the poorest city in the United States'

Nick Ferrari attends his first Trump rally in Pennsylvania as he meets the crowd in 'the poorest city in the US'

Home Secretary Yvette Cooper has said she strongly disagrees with a tweet that a backbench MP appeared to have reposted saying Kemi Badenoch represents "white supremacy in blackface".

Cooper condemns 'appalling' tweet shared by Dawn Butler labelling Kemi Badenoch 'white supremacy in blackface'

Exclusive
Cumberland County: Where the US election could be won or lost

Nick Ferrari travels to America for the US Election: Watch the best bits here

Exclusive
The Chancellor was speaking to LBC's Nick Ferrari at Breakfast

Chancellor ‘doesn’t know’ salary of new chairman tasked with ensuring government ‘value for money'

Transparency over Southport stabbings key to avoiding 'deep public mistrust in the criminal justice system', says Jenrick

Transparency over Southport stabbings key to avoiding 'deep public mistrust' in criminal justice system, says Jenrick

Exclusive
The government has introduced its football governance bill.

'We're on the same side': Minister denies feud with Premier League over Football Governance Bill

Exclusive
Protest sign reading Danger water pollution, this water is polluted with raw sewage. The responsible party is Thames Water. River Wey, Guildford, UK

Government warns demand for water could outstrip supply as they launch review into 'broken' sector

Nick Ferrari.

'He'll look over his shoulder for the rest of his life': Concern for Martyn Blake's privacy long overdue

Exclusive
'No one gutsy enough to address this': Mylene Klass calls on government to introduce paid miscarriage leave.

Government not 'gutsy' enough to implement paid miscarriage leave claims Myleene Klass

Exclusive
David Cameron speaks to LBC

David Cameron calls for UK to sanction two Israeli ministers as change on arms embargo 'didn't satisfy anybody'

'I wouldn't do it again': Jenrick suggests regret for painting over murals at children’s asylum centre.

'I wouldn't do it again': Robert Jenrick says he regrets ordering workers to paint over murals at children’s asylum centre

Exclusive
Where did all the fish go? Feargal Sharkey uncovers dangerous blue-green algae plaguing River Wye

Where did all the fish go? Feargal Sharkey uncovers dangerous blue-green algae plaguing River Wye