The UK energy regulator Ofgem have revealed plans to increase the frequency it adjusts the energy price cap to every three months instead of twice a year, a move the regulator says would reflect the most up-to-date energy prices.
The price cap is the maximum amount suppliers can charge households in England, Wales and Scotland on standard tariffs, which just last month jumped from £1,277 to £1,971 and is set to increase a further £600 when the cap is revised again in October.
In a statement released today, the regulator said changing the price cap level more often would help consumers to take advantage of falling wholesale prices more quickly.
Jonathan Brearley, chief executive officer of Ofgem saying: “Today’s proposed change would mean the price cap is more reflective of current market prices and any price falls would be delivered more quickly to consumers.”
If the latest consultation is successful, Ofgem said it planned to bring in the changes from October, so households would see no impact from an update until 1 January under the plans.
