Ofgem, the regulator for gas and electricity markets, has announced details of a proposed price cap on energy tariffs. This will mean households covered by the cap will be protected from being charged more than they should for their energy, with suppliers being required to reduce prices either to the level of, or below the cap. It is expected that the cap will be in place by the end of the year.
The price cap is expected to save consumers approximately £1 billion, with the exact savings a household may see dependent on their energy use, their current energy deal, how much they currently pay for their energy and whether they are duel customers. 11 million households on poor value default tariffs will be protected, whilst a typical consumer on the most expensive tariff is expected to save more than £120. Standard duel fuel energy consumers will have their tariff capped at £1,136, meaning customers will save an average of £75 each year.
A number of the End Fuel Poverty Coalition’s members issued statements in response to the price cap. You can read each members response by clicking on their name; Citizens Advice and National Energy Action.