Energylinx News

February 7, 2018

Ofgem Raises the Energy Price Cap

Energy regulator, Ofgem, has said that five million of the UK's most vulnerable households are facing an average rise of £57 on their annual energy bills.

The increase will bring the price of the average dual fuel bill of those who have their bills capped to £1,089. This is up from £1,031.

The cost of producing energy is expected to rise in the spring and Ofgem said savings under the current price cap will be reduced from April.

Around four million people with pre-payment meters already have their bills capped and Ofgem extended the safeguard tariff to an extra one million households who currently receive the warm home discount earlier this week.

The extra million households will start by saving £115 a year, but from April the savings will be reduced to an average of £66 a year.

Those eligible for the latest cap include those with low incomes and some people over the age of 65.

Dermot Nolan, Ofgem's chief executive, said

"Protecting vulnerable customers is a priority for Ofgem. Even when energy costs rise, people on the worst deals are better off under the safeguard tariff as they can be sure that they are not overpaying for their energy, and any rise is justified."

The industry body, Energy UK, has responded to the Ofgem announcement Lawrence Slade, chief executive of Energy UK, said:

"That the cap will rise from April does show how energy costs, which are out of any suppliers direct control, are increasing and underlines why it is critical any broader cap must be cost-reflective and protect competition which is delivering benefits for consumers."

It is possible that households on the safeguard tariff could save more money by switching to a cheaper energy deal. Energylinx can compare all the energy suppliers on the market to find customers the best deal. You can do this online or by calling one of our advisors on 01259 220000.

Posted on February 7, 2018 at 12:24 PM