The EPC was originally brought in under Theresa May’s government as a time-limited intervention to protect customers from price-gouging from energy firms.

But a report from the Centre for Policy Studies (CPS), a centre-right think tank, said that since the 2022 energy crisis began, the EPC now functions as the “de facto price” for 29 million households, or almost the entire market.

Ofgem has also introduced policies that actively disincentivise firms from trying to attract new customers, the CPS added, which has effectively frozen the energy market, creating higher prices for consumers.

It called on the government to remove the EPC in its current form while strengthening protections for those who genuinely need support.

The research shows that for nearly two years, almost all tariffs have been priced at or just below the price-capped level, with no evidence this will change in the near future. This effectively means the government is setting the market...