The energy price cap, the mechanism that determines gas and electricity bills for 22 million households, could soon be reviewed every three months under plans announced by the industry regulator
"This change would also help energy suppliers more accurately predict how much energy they need to purchase for their customers, reducing the risk of further supplier failures which ultimately push up costs for consumers."
They also include an effort to ensure that consumers are able to reap the benefits of falling gas prices more quickly, Ofgem added. It argued that the cap change should reduce the risk of costs related to supplier failures landing at the feet of bill-payers. "Yes, the price would go up more quickly as prices go up, but equally importantly as those prices come down, then the price cap comes back down again.
He added:"With the Russian invasion of Ukraine, we are seeing a sustained increase, a further increase, in gas prices. So, the difficult news I have is that it is likely in October that prices will go up again." The Bank of England warned this month that the impact of the growing cost of living crisis risked the UK entering recession by the year's end, with inflation topping 10%.
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