Hard-pressed Britons face energy bill rises every THREE MONTHS: Fury as Ofgem reveals plan for quarterly price-cap changes rather than six months so ‘suppliers to better manage their risks’
- Ofgem energy price cap will be updated quarterly, rather than every six months
- Energy regulator warns that customers face a ‘very challenging winter ahead’
- Says it wants ‘prices charged to Britons to be a ‘better reflection’ of current costs
- Ofgem claims change will allow ‘energy suppliers to better manage their risks’
Ofgem today confirmed the energy price cap will be updated quarterly, rather than every six months, as it warned that customers face a ‘very challenging winter ahead’.
The energy regulator said this switch to changes every three months means ‘prices charged to bill-payers are a better reflection of current gas and electricity costs’.
Ofgem added that this will also allow ‘energy suppliers to better manage their risks, making for a more secure market helping to keep costs down for everyone’.
The London-based regulator claimed that the change to when the energy price cap is updated ‘will go some way to provide the stability needed in the energy market’.
It is also aiming to ‘reduce the risk of further large-scale supplier failures which cause huge disruption and push up costs for consumers,’ adding: ‘It is not in anyone’s interests for more suppliers to fail and exit the market.’
Ofgem said that although Britain only imported a small amount of Russian gas, as a result of Russia’s actions, the volatility in the global energy market experienced last winter had lasted much longer, with much higher prices for both gas and electricity than ever before.
As expected, Ofgem also warned that as a result of the market conditions, the price cap would have to rise to reflect increased costs.
The next price cap level will be published at the end of this month.
Ofgem chief executive Jonathan Brearley said: ‘I know this situation is deeply worrying for many people. As a result of Russia’s actions, the volatility in the energy markets we experienced last winter has lasted much longer, with much higher prices than ever before.
‘And that means the cost of supplying electricity and gas to homes has increased considerably.
‘The trade-offs we need to make on behalf of consumers are extremely difficult and there are simply no easy answers right now.
‘Today’s changes ensure the price cap does its job, making sure customers are only paying the real cost of their energy, but also, that it can adapt to the current volatile market.
‘We will keep working closely with the Government, consumer groups and with energy companies on what further support can be provided to help with these higher prices.’
Source: Read Full Article