What exactly is the price cap? It’s a cap on the price that individuals pay for energy if they are on a “standard variable” energy tariff or a tariff they haven’t chosen – known as a “default tariff”. These are the most basic packages offered by energy companies, and tend to apply if you haven’t shopped around for a better deal.
Guardian 31st Dec 2018 read more »
Millions to see annual energy bills drop as price cap takes effect. but experts have warned that the saving will be wiped out within months.
Guardian 31st Dec 2018 read more »
Householders could be left more than £200 a year out of pocket as the energy regulator has admitted a cap on bills which comes into force today could reduce the number of customers shopping around for a better deal. The cap, which applies to the default energy tariffs paid by consumers after any fixed-rate period comes to an end, prevents suppliers charging the average household more than £1,137 a year. Ofgem said the cap will help the 11 million households who have stayed loyal to their supplier and been moved onto more expensive default tariffs. However, the regulator’s own impact assessments suggest that the cap could reduce by around a third the number of consumers who move between firms to try and save money.
Telegraph 1st Jan 2019 read more »
Households will no longer face “unjustified” increases to their energy bills, the government has promised, after its price cap came into effect today. The policy should deliver an initial reduction in prices for about 11 million households on standard tariffs, who have been promised average savings of £76 each a year. Consumer groups urged people to keep shopping around for better deals and said that households could save a further £200 a year by switching to the cheapest tariffs on offer. Experts also reiterated warnings that the cap would not end price rises, with the regulator expected to authorise companies to increase prices in April.
Times 1st Jan 2019 read more »
