Theresa May's half-baked imitation of Labour's energy price cap will cost bill payers dearly

A Labour government would introduce a temporary price cap while we fix the broken energy market, increasing transparency and competition, making switching fast and easy, driving down prices in the long term

Rebecca Long Bailey, Labour's Shadow Secretary of State for Business, slammed the Tories' plan for energy price caps (PA)

“It’s a con.” “It’s extremely dangerous.” In fact, it’s a “Marxist universe!”

These are the words the Conservative Party used to describe Labour’s energy price cap proposals just two years ago. They have now made an astonishing and embarrassing U-turn, proposing the same policy as part of their election campaign, and “agreeing” with Labour that this market intervention is what the country needs.

Many people would be forgiven for being slightly sceptical about the Tories’ true intentions when it comes to this proposal – and indeed their approach to the wider energy market.

Not only did they dismiss Labour’s proposals in 2015, they have done nothing over the last seven years to fix our rigged energy market. Increases in energy bills have left the average household £900 worse off.

Their sudden decision to do something now, after years of inaction, shows just how much they are simply “playing politics” with people’s wallets. Should we even believe that they will deliver on this promise?

Lest we forget that they have broken manifesto promise after manifesto promise in recent years.

Most recently, after promising in their 2015 manifesto not to increase National Insurance contributions, they broke this pledge and proposed an increase in this year’s Budget. This was quickly scrapped, causing much embarrassment for the Chancellor.

It is clear that the energy price cap is little more than an election gimmick and, whilst stealing Labour’s policy, they have also failed to understand its place in dealing with the wider changes required to the energy market.

Labour has consistently called for an energy price cap as a temporary measure whilst we fix the broken energy market. We have made it clear that capping prices in absence of wider market reforms will not ensure that bills remain low and competitive in the long term.

The Tory policy implies a permanent price cap on standard variable tariffs without a fixed end date. The 70 per cent of people who do not switch invariably end up on such standard variable tariffs. However, the 30 per cent who do have time to research and switch do get better deals. Sadly the assumption follows that the 70 per cent simply end up subsidising the 30 per cent.

But, following the Government’s proposed policy, the best fixed-price deals will inevitably go up to offset the suppliers’ losses, punishing everyone who took the time to switch tariff or supplier.

A Labour government would introduce a temporary price cap while we fix the broken energy market, increasing transparency and competition, making switching fast and easy, and driving down energy prices in the long term. The details of these policies will be set out in our manifesto.

The most vulnerable customers are often those who are paying much more than they need to. This is because they are the least likely to have access to the internet or information on switching suppliers. It’s also because they’re likely to live in the least energy efficient housing, losing electricity through old light bulbs and inefficient appliances, as well as losing heat through thin single-glazed windows and cold draughty lofts.

Under a Tory government, help for these vulnerable people, in terms of insulation to bring down their bills, has fallen a staggering 88 per cent in ten years. This is leaving the elderly and poorer families worse off. A Labour government would significantly increase the help these people deserve. Reducing their energy bills and making it easier to keep their homes warm and comfortable.

The Competition Markets Authority have highlighted that customers are being charged £1.4bn more than customers would in a truly competitive market. They also add that a standard variable tariff price cap alone is not the way to fix the energy market and ensure that bills are as efficient as possible.

Labour agrees with this analysis and, put simply, the Tories half-baked Labour policy imitation won’t help customers save in the long term.

Only a Labour energy price cap – followed by policies to fix the energy market – will see customers make huge savings on their energy bills.

Rebecca Long-Bailey is the shadow Secretary of State for Business