Price cap explainer video: our sources

News reports

• The news segment at 00.25 came from an ITV News piece in September 2018 about the imminent introduction of the energy price cap
• The Guardian article seen at 01:12 is a piece about profit margins from 2017
• At 01.07 we discuss tease and squeeze tactics; the BBC covers this here

Press releases

• (01:53) - “We do not believe that a price cap will benefit customers”
  Centrica
• (02:04) - "Price cap saves £1bn in 2019"
  Gov.uk

Reports and research

Standard Variable Tariffs were more expensive than fixed tariffs

Competition and Markets Authority: Energy Market Investigation, page 6

“We have also noted that, over the period 2011 to mid-2015, average revenue per kWh earned by the Six Large Energy Firms from customers on the standard variable tariff – which about 70% of the customers of the Six Large Energy Firms pay – was around 11% higher for electricity and 15% higher for gas than average revenue earned from customers on other tariffs.”

Ofgem: Retail Energy Markets in 2016, page 2

“More than one in five consumers are very disengaged. They are predominantly on expensive standard variable tariffs, less likely to engage with information and more likely to be in vulnerable situations.”

Suppliers offered introductory tariffs far cheaper than their SVT

Ofgem: State of the energy market 2017, page 6

“Price differences between variable tariffs and fixed tariffs have widened over this period, suggesting suppliers can offer low-price fixed tariffs to attract active consumers and cover direct costs, but rely on the higher prices charged to less active consumers to cover operating costs and maintain profits.”

Octopus Energy: Making energy prices fair, Figure 2.8

Network and policy costs are predicted to go up in the future

2030 GB Electricity bill estimate

Note: Renewables Obligation costs are set to come back on to bills in 2029 (though without this, network and policy costs are still set to increase).