Ofgem, the regulator for gas and electricity markets, has announced the level and timing of the price cap on default tariffs. This will mean energy suppliers will be required to reduce their prices to either the level of, or below the cap. Ofgem’s announcement can be downloaded here.
The cap will come into effect on 1st January 2019 and will be set at £1,137 for a typical dual fuel customer who pays by a direct debit. Consumers are expected to save an average of £76 each year, with this increasing to £120 for those on the most expensive tariffs. Those customers who are in receipt of the Warm Homes Discount but do not have a prepayment meter will be placed onto the default price cap and no longer on the safeguard tariff.