Conservative plans for an energy cap could cost consumers upwards of £200 according to price comparison site MoneySuperMarket

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The Conservatives have confirmed plans to intervene on energy price if re-elected (Source: Getty)

Consumers could lose out on more than £200 a year if the government imposes a cap on energy prices, a price comparison site has claimed.

The Conservatives have confirmed they will intervene in the energy market if re-elected as the UK's ruling party next month.

Plans are believed to focus on backbencher John Penrose's suggestions for a relative cap on price increases for customers on standard variable tariffs, with some reports stating the government hopes to save consumers £100 a year.

However, MoneySuperMarket has warned the plan represents a "disaster" for consumers, and highlighted that savings from shopping around are commonly far greater.

The price comparison site claims that consumers save an average of £324 on their bills, dwarfing the £100 saving targeted by the government.

Read More: The key to a free energy market? A relative price cap

Stephen Murray, energy expert at MoneySuperMarket, said: “For customers who have the ability to switch – majority outside the most vulnerable – an energy price cap would be a disaster.

He added: “This is not a Big Six issue as many believe. A growing number of emerging and challenger suppliers have significant price differentials across their tariff portfolio and a cap would simply push many cheaper tariffs out of the market, resulting in higher prices."

British Gas owner Centrica has been among the firms to raise concerns over the proposals, while three small energy challengers have been among its backers.

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