New price cap of £1,690 comes into place on Monday
The energy prince cap is set to fall on Monday, April 1, providing much needed relief to households across the country cost of energy is still not cheap
The regulator sets the maximum amount energy suppliers can charge customers for each unit of energy used meaning a household could still pay more or less depending on their usage. Despite the cap, households can still pay more than £1,690 for energy each year. The figure only relates to an estimate of what a typical household would likely pay.
The price cap is reviewed every three months, following its introduction in 2019 to ensure customers were not having their energy prices ramped up by suppliers.Any changes to the energy price cap are made in light of price fluctuations in the wholesale energy market. It should be noted that Ofgem can still change the price cap amid “exceptional circumstances” such as any severe global political turmoil or market failure for example. The last time Ofgem put this into effect was in the winter of 2021/22 when several suppliers failed.The next Ofgem price cap is set to come into effect at the start of July, and any changes will be announced several weeks ahead of time.
There are still a number of contributing factors that could change this prediction over the coming months, however, and Ofgem will release the official cap for July in the coming months.
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