Ofgem, the regulator for gas and electricity markets, has today announced an increase to the cap on default and pre-payment meter tariffs.
First introduced on 1st January 2019, the energy price cap set a limit on a unit price of energy and a maximum standing charge. This meant energy suppliers had to charge consumers a price either at the level of or below the cap. As a result, consumers were expected to save an average of £76 annually.
However, as a result of higher wholesale energy costs, Ofgem has increased the level of the cap. The new cap will come into effect on 1st April 2019, under which the default tariff price cap will increase by £117 annually and the pre-payment meter cap by £106.