Ofgem says it may also launch a new 'targeted cap' which could be based on factors such as vulnerability
Ofgem is to consider a new “dynamic” price cap based on the time of day households use their energy, it has announced.
As more households adopted time-of-use tariffs, it could become harder to retain a universal price cap that was suitable for everyone. The introduction of half-hourly settlement from 2025 – when smart meters will record energy consumed every 30 minutes – is expected to lead to a growth in smarter time-of-use tariffs that reward customers for being more flexible in their energy usage, Ofgem said.
It said energy retail markets were changing as increasing numbers of consumers changed their energy consumption and begin using electric vehicles, heat pumps and solar panels.
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