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Energy price cap to come in force from 1 January

Energy price cap to come in force from 1 January
13.11.2018
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THE price cap on so-called default energy tariffs will begin on 1 January,which wil save 11 million households up to £120 each.

The industry regulator stated that the price cap would collectively remove about £1bn from the bills of customers which were being overcharged for their gas and electricity.

Ofgem stated that the price cap, whereby first declared in September, was to be initially set at £1,137 per year for a typical dual fuel customer paying by direct debit.

“When the price cap comes into force suppliers will have to cut the price of their default tariffs, including standard variable tariffs, to the level of or below the cap, forcing them to scrap excess charges.

The cap will save customers who use a typical amount of gas and electricity around £76 per year on average, with a typical customer on the most expensive tariffs saving £120.”

Its statement also alerted customers that the savings they accrued would be inregards on how much energy they use and that they would be able to save even more by shopping around for a better deal.

Default tariffs are the controversial price plans – described as a “rip-off” by the prime minister – which energy customers are rolled on to when their fixed price deals come to an end.

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