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 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

UK troops in Cyprus 'ready to act' says defence secretary noting forces already play 'important' role in preventing escalation

UK troops in Cyprus 'ready to act' with forces playing an 'important' role in preventing escalation

Exclusive
LBC has uncovered levels of E Coli in Britain’s rivers over fifty times higher than levels recommended by the Environment Agency, in the latest edition of Feargal on Friday.

Feargal Sharkey exposes dangerous levels of E. coli in British rivers

Exclusive
Suspending arm sales to Israel will have weakened UK's 'hand' in Washington, Ex-armed forces minister says.

Suspending arms sales to Israel weakened UK's 'hand' in Washington, ex-armed forces minister says

Tory leadership hopeful Tom Tugendhat refuses to commit to reversing Labour's cuts to the winter fuel payment

Tory leadership hopeful Tom Tugendhat refuses to commit to reversing Labour's cuts to the winter fuel payment

Exclusive
XL Bullies killed 16 people in 2023.

XL Bullies have created a 'new burden on policing' as forces have to look after dogs waiting for court hearings

Exclusive
LBC's Nick Ferrari and Feargal Sharkey are teaming up to take a look at Britain's waterways

Nick Ferrari and Feargal Sharkey join forces to investigate the state of Britain's polluted waterways

Exclusive
Israel Ambassador Tzipi Hotovely spoke with LBC's Nick Ferrari.

Two-state solution 'far away' because '80 per cent of Palestinians support Hamas', says Israeli Ambassador