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U.K. Targets ‘Rip-off' Energy Prices With Temporary Price Caps

  • New law would cap consumer gas, power prices through 2020
  • Government measure is aimed at six largest utilities
Vapour rises from cooling towers at Uniper SE's coal-fired power station in Ratcliffe-on-Soar, U.K., on Tuesday, Sept. 13, 2016. EON SE cut most of the grip on the utility's legacy fossil-fuel fired power stations as its Uniper SE unit was listed on Monday.
Photographer: Chris Ratcliffe/Bloomberg
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Theresa May will introduce legislation to Parliament on Monday to cap prices charged to consumers by the U.K.’s biggest utilities, following through on a pledge the prime minister made in last year’s general election.  

The new “temporary” measure will require the energy regulator, Ofgem, to cap power and gas prices until 2020, the Department for Business, Energy and Industrial Strategy said in an emailed statement. The measure will protect 11 million households currently on the highest energy tariffs, as well as 5 million homes already protected by Ofgem.