Ofgem to reveal new energy price cap

The energy regulator is set to announce the energy price cap level coming into play on 1st January

Big Zero Report 2022

Ofgem will reveal the level of the new energy price cap on Thursday.

This comes after the energy regulator changed the price cap methodology earlier this year.

As customers face a “very challenging” winter with rising energy bills and cost of living, Ofgem will announce the new rise in the cap, which sets the maximum amount that energy suppliers are permitted to charge per kWh.

According to the new rules introduced earlier this year, the energy price cap is updated quarterly rather than every six months.

It is believed the change will ensure that prices charged to billpayers are a better reflection of current gas and electricity costs.

Last week, during his Autumn Statement, the Chancellor confirmed that the energy bill for a typical household would rise to £3,000 in April from the current £2,500 under the Energy Price Guarantee.

Cornwall Insight consultants have predicted that the default tariff cap could be £4,245 a year in the first quarter of 2023.

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