Energy price cap to change every THREE months, under new plans

THE ENERGY price cap, which limits just how much energy firms can charge customers, could be changed every three months under new plans.

The cap is typically updated every six months but that time could be halved under new plans announced by Ofgem today.

It means more frequent updates to the maximum energy suppliers can pass on to customers on a variable dual-fuel rate.

But the regulator says that the move could help reflect the most up to date and accurate energy prices – helping customers battle rising costs.

That's because, should prices fall from their current record highs, energy bill-payers would see the benefit much sooner rather than waiting MONTHS for costs to drop again.

Jonathan Brearley, CEO of Ofgem, said: “Our top priority is to protect consumers by ensuring a fair and resilient energy market that works for everyone.

“Today’s proposed change would mean the price cap is more reflective of current market prices and any price falls would be delivered more quickly to consumers."

Ofgem says the change could take place from October this year.

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