Ofgem has announced the price cap review period will now move to quarterly. The wholesale price of electricity and gas will now be reviewed by the energy regulator Ofgem every three months instead of the current six months. This review period has now been frozen by the government (8 Sept) with the announcement of the Energy Price Guarantee scheme that will run for two years.
Ofgem says (4 August 2022) that the change is to reflect the most up to date and accurate energy prices: "Today's change will go some way to provide the stability needed in the energy market, reducing the risk of further large-scale supplier failures which cause huge disruption and push up costs for consumers. It is not in anyone's interests for more suppliers to fail and exit the market."
To see how this might affect you our Energy Specialists have put together this simple guide to help direct you to places where you can find support.
What is the Ofgem quarterly energy price cap?
In 2019 Ofgem established a price cap to regulate energy prices on default and variable tariffs. The idea was to make sure you pay a fairer price for your energy, and links to how much suppliers can charge you per unit of gas or electricity, based on the underlying costs to supply you energy.
This cap is usually reviewed every six months, with the cap level set for both winter and summer energy prices. However, Ofgem has now found that it would be better for consumers and the energy industry to change the price cap review to every three months.
Is the Ofgem energy price cap going to affect me?
The energy price cap will only apply to you if you're on our variable tariff. If there’s a rise in the cap it means that you could end up paying more for your energy. You can check which tariff you're on in your online account. However this is not applicable to you if you're on our fixed rate tariffs, but will affect you when your contract ends.
We understand this could impact many of you and especially those that are vulnerable.
This is why we wanted to reassure you that we are dedicated to helping you where we can. We have put together some helpful resources where you can access support from both us and the government.
Our Energy Specialists are here to help if you're concerned about the impact of the price cap rise on your energy bills. If you're struggling to pay, please visit our help page to find out more about how we can support you.
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