Energy price cap could be reviewed every three months

The energy price cap, which determines gas and and electricity bills for UK households, could soon be reviewed every three months, Sky News reports.

The shake-up would ‘reflect the most up to date and accurate energy prices.’

Most homes – around 22 million – currently sit on the energy price cap.

The cap protected families throughout the pandemic, as it prevented companies from passing on ‘unprecedented increases’ to households.

Ofgem told Sky News: ‘A more frequent price cap would reflect the most up to date and accurate energy prices and mean when prices fall from the current record highs, customers would see the benefit much sooner.

‘This change would also help energy suppliers more accurately predict how much energy they need to purchase for their customers, reducing the risk of further supplier failures which ultimately push up costs for consumers.’

The price cap was brought in two years ago to put an upper limit per unit of gas and electricity but the pandemic – and increase in people working from home – caused concerns.

Get in touch with our news team by emailing us at [email protected]

For more stories like this, check our news page.

Source: Read Full Article