Energy bills may change depending on when you use more

Ofgem is to consider a new “dynamic” price cap based on the time of day households use their energy, it has announced. The regulator has launched a consultation on a range of options for the future of the price cap, including a “more dynamic cap” with “time-of-use dependent unit rates to encourage consumer flexibility”.

Ofgem said the price cap, along with the temporary ban on acquisition-only tariffs, had worked well to protect customers from the “loyalty penalty”, where customers on default tariffs paid higher prices, and from the worst of the recent volatile markets and wholesale price surges that were a result of the energy crisis.

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