Energy Price Cap coming into place this December
We recently posted a blog regarding a proposed Energy Price Cap which is designed to protect 11 Million Households in the UK from unfair price rises on your bills.
Ofgem recently provided actual figures, and how they plan to execute the ‘ Safeguard Tariff’ which is often called a ‘Price Cap’. The purpose of this short blog is to summarise how the Energy Safeguard Tariff can affect you, but for full details you should visit the Ofgem news page, which will be linked at the bottom of this blog.
The planned cap will commence from the end of December and stay for the next 5 Years (Until 2023).
How can an energy price cap benefit you?
The average price cap for each household will be £1,136, which will save customers an average of £75 per year. These figures are strictly estimates as it depends on how much energy each house uses. If you leave your heating on all day, bills will still be higher in comparison to someone who doesn’t.
Someone on the most expensive tariff will save as much as £120, but savings depend on a number of factors including whether you pay by direct debit or not, who your energy supplier is, and how much your general usage is.
Who will benefit from an Energy Price Cap?
11 Million Households in England, Scotland and Wales that are on default tariffs should be better off with the Energy Price Cap. Customers in Northern Ireland have a different energy regulator, and have an Energy Price Cap already.
Why is an Energy Price Cap coming into place?
Theresa May announced the Energy Price Cap earlier this year in July. The Energy Price Cap was put in place to protect consumers from “rip-off” bills.