Price cap could be shaken up or even scrapped under new Ofgem proposals. Critics of the price cap say it has led to high energy bills and no real competitionEnergy bills could become cheaper for more than 90 per cent of the country under plans to shake-up the price cap being considered by regulator Ofgem.
Most households now pay price-capped bills because energy firms have severely restricted the number of cheaper fixed-rate tariffs available.RELATED ARTICLES Share this article Share HOW THIS IS MONEY CAN HELP Ideas Ofgem is considering include: The Government also wants more electricity to come from renewable sources where supply can vary, such as from wind or solar power.
Richard Neudegg, director of regulation at Uswitch, said: 'Almost three years on from the start of the energy crisis, we're yet to see a full return to competition in the market – and the price cap must bear some of the blame. Ofgem director general of retail and markets Tim Jarvis said: 'We're looking in detail at the elements of the price cap that have worked well and the challenges we've identified in recent years, while also considering how a wide range of future consumers will use and pay for energy, to make sure we develop the right measures that will protect and benefit consumers across the board.
Most households had fixed-rate energy deals at the time, and only moved onto variable-rate tariffs if they did not renew at the end of their term.