Ofgem is exploring options for the future of energy price caps, including time-based rates that would charge consumers different prices depending on when they use energy.
A “more dynamic” price cap could be introduced by Ofgem based on the time of day households use its energy, it has been revealed. The energy regulator has launched a consultation on a range of options for the future of the price cap including on with a “time-of-use dependent unit rates to encourage consumer flexibility”.
Ofgem added that as customer diversity grows, and more households adopt time-of-use tariffs, it “could become harder to retain a universal price cap that is suitable for everyone”. It also said that while price protection “will remain an important part of the energy market”, it is asking charities, consumer groups, businesses, bill-payers and suppliers for their views as well as proposals for future alternatives.
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