Ofgem to introduce energy price cap
Energy price protection is coming.
In July 2018, Parliament passed the Government’s Domestic Gas and Electricity (Tariff Cap) Act, requiring the introduction of a temporary tariff cap for customers on poor value “standard variable” energy tariffs and “default” tariffs.
As the energy regulator for Great Britain, Ofgem has a duty and powers to put the cap in place. Ofgem expects it will give 11 million customers a fairer deal for their energy, and save consumers around £1 billion.
Ofgem is working to introduce the cap by the end of the year, and will confirm its decision on how it will work in November. More information is available in Ofgem’s press release and statutory consultation.
While consumers won’t need to do anything to be protected by the cap, suppliers must apply it. Ofgem is aiming to help those affected know their rights, how it will work and where to direct questions if they have them.
Information for your tenants
Accompanying Ofgem’s decision announcement will be an impartial online guide for consumers. This will include a toolkit of leaflets, videos, posters, email content and more to support organisations which may have a consumer advice role, including housing associations.
To be notified when the guide becomes available, organisations can subscribe to Ofgem’s Alerts & Briefings and Events mailing lists at www.ofgem.gov.uk/subscribe.
For further information, please contact stakeholders@ofgem.gov.uk.