Energy watchdog Ofgem has announced that the energy price cap is due to come into effect in December 2018. The announcement was made in Ofgem’s consultation overview; a culmination of five working papers on the proposed cap.
The cap on Standard Variable Rates, considered the most extortionate tariffs available to consumers, is due to be lifted in 2020, however can be extended by up to 12 months on three occasions. It’s also likely that the cap will be reviewed and updated every six months, based on changes to supplier costs.
Since originally announced as part of the Tory manifesto in 2017, the energy industry has reacted with scepticism, alleging the move would be more damaging to customers in the long term. Energy’s “Big Six” allege that capping bills would almost certainly end competition, with fewer people switching supplier as it would be no longer seen as necessary.
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