An energy price cap may not happen but reform is on its way
There is no question that the government has backed away from its manifesto pledge to cap energy prices for at least 17 million energy customers but some form of intervention looks inevitable.
British Gas's point about the inflationary impact of government policy is a fair one - the enormous cost of making electricity greener is being quietly added to consumer bills rather than paid for out of general taxation.
But the company's suggestion that government policy has forced it to hike electricity prices has been quickly dismissed by government.
There is a cross-party political consensus that the energy market is dysfunctional: that bills are too high, that customer service is too poor and that consumers are either too confused or too apathetic to switch.
What happens next depends on OFGEM, the energy regulator. The possibility of a price cap remains on the table but there are other options open to it.
The Business Secretary, Greg Clarke, wrote to OFGEM after the election, urging it to take action to protect customers stuck on Standard Variable Tariffs which he said were "poor value".
Today the boss of Centrica, which owns British Gas, called on OFGEM to phase out such tariffs on the grounds they are open-ended.
Until now the company has always defended them. The change in position suggests Centrica has realised which way the wind is blowing.
A widespread price cap may not come to pass but significant reform is on the way.