Energy prices to increase for millions as Ofgem raises cap
Some 11mn British households on default tarrifs will be affected as the energy regulator, Ofgem, is set to increase the energy price cap by 9.3% on 1 April 2019.
According to Ofgem, the increase to the cap – which is designed to ensure energy companies can thrive and offer good value to customers – reflects a ‘sharp rise’ in gas and electricity costs. The new price cap will run for six months, with the winter cap to be announced in August.
Professor David Elmes, leader of the Warwick Business School Global Energy Research Network, comments: ‘While it’s right to ensure customers get a good deal and service, the government is struggling to support an essential sector in the UK economy. The cap is making it hard to run a viable retail energy business in the UK.’