Cost of Energy, Politics Business groups blast Theresa May’s energy price cap announcement Written by The Energy Advocate on October 5, 2017 More in Cost of Energy: SSE to pay £1m for sending inaccurate statements June 18, 2018 SSE to increase over 2 million energy bills by £76 per year June 6, 2018 SSE profits fall prior to “year of major transition” May 31, 2018 Business lobby groups have lined up to attack Theresa May’s proposal for a cap on “rip-off” energy bills, following her disastrous conference speech in Manchester. The speech, which was marred by a prankster brandishing a P45, repeated coughing fits from the Prime Minister, and letters falling off from the slogan behind her, contained a pledge to introduce draft legislation for an energy price cap, as set forth in the Conservative manifesto. However, business groups were quick to dismiss the plan. Responding to the speech, the Confederation of British Industry said: “Affordable energy matters for everyone and particularly for the most vulnerable. However, today’s announcement is an example of state intervention that misses the mark. Market-wide price caps are not the best answer.” The Institute of Directors was also critical: “You have a Conservative Party which talks about the importance of markets, but then tinkers around with […] energy price caps. What are business leaders meant to make of it all?” John O’Connell, Chief Executive of the Taxpayers Alliance, said that the PM was focusing on the wrong target: “The Prime Minister is right that families are struggling to cope with the rise in energy bills and this is due to green taxes and subsidies. Instead of intervening in the market, the Government should stand up to the green lobby and slash unnecessary taxes and subsidies that artificially inflate the cost of energy for families.” In August, British Gas owner Centrica produced figures showing that government energy policies, including green subsidies, now made up a greater share of consumer bills than the wholesale cost of electricity, having risen by 104% since 2014. Green levies are expected to cost households £110 a year each on average by 2020, according to the National Audit Office.