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Energy price cap 'won't be scrapped', business secretary pledges amid gas crisis
21 September 2021, 08:40
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.
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.