The government’s cap on energy prices will probably have to be raised in the spring, only three months after being introduced, the regulator has admitted. Ofgem said the cap would come into effect on January 1 and be set initially at £1,137 a year for a household with typical dual fuel usage, rebuffing calls from suppliers for a higher limit. The cap will cover about 11 million households on standard tariffs and is expected to force most big suppliers to cut their prices, delivering savings of £76 a year for a typical household and about £1 billion in total. Ofgem, which will review the price cap twice a year, confirmed it was “likely” that it would have to raise the cap from April 1 because of increasing wholesale costs, the amount paid for gas and electricity by the energy companies.
Times 7th Nov 2018 read more »
Telegraph 6th Nov 2018 read more »