Ofgem, the energy regulator for the UK, has today proposed introducing an energy price cap to limit what suppliers can charge customers to £1,136 per annum. As of 8 October, the average standard variable tariff from the “Big Six” suppliers is to be £1221; and the most expensive will be £1256 from Scottish Power.
This cap will impact 11 million standard tariff energy customers in the UK. A typical customer could save £85 a year.
Dermot Nolan, CEO of Ofgem said: “Once the price cap is in place, all households in Great Britain covered by the cap will be protected from being overcharged for their energy.”
This cap comes after two waves of price hikes arriving from big suppliers in the last few months.
However, experts note that customers could still save an extra £200 to £300 per year by switching supplier – without having to wait for a price cap.