ENERGY watchdog Ofgem is to consider a new “dynamic” price cap based on the time of day households use their energy, it has announced.
The introduction of half-hourly settlement from 2025 – when smart meters will record energy consumed every 30 minutes – is expected to lead to a growth in smarter time-of-use tariffs that reward customers for being more flexible in their energy usage, Ofgem said.-dominated electricity sector would reward consumers for shifting the time of their energy consumption, which would in turn reduce costs for everyone.
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.
“We will continue to work with government, industry, consumer groups, charities and the public on the future of pricing regulation. Our aim is ensure the market works for everyone.” "Our experience supporting users of such tariffs, especially in rural areas, reveals significant confusion and disadvantage among consumers. We need to focus on vulnerability and affordability.”
“The devil will be in the detail, but it is vital that any changes made to the cap creates conditions to bring back better deals for consumers, and also offers targeted protections to the most vulnerable.”We know there are thousands of National readers who want to debate, argue and go back and forth in the comments section of our stories. We’ve got the most informed readers in Scotland, asking each other the big questions about the future of our country.
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