The Liberal Democrats have demanded that the expected energy price cap rise in October be scrapped and the cost covered by a windfall tax on the profits of energy company.
Experts predict that the energy price cap - the maximum amount suppliers can charge their customers in England, Scotland and Wales - will hit £3,615 in the autumn, compared to an average bill of £1,400 a year in October 2021. The cap, which is designed to protect consumers from short-term price changes, is adjusted every three months and is based on the price energy suppliers pay producers for electricity and gas.
The Liberal Democrats estimate that keeping the price cap at its current level of £1,971 would save the average household £1,400 a year. Without raising the price cap, suppliers will have an estimated shortfall of £36bn, and the Lib Dems say this should be met by expanding the windfall tax on oil and gas company profits, and using the higher-than-expected VAT revenues "as a result of soaring inflation".
