Energy bills will rise by an average of £500 a year despite an expected reduction in Ofgem’s price cap, analysts expect.
The energy regulator is expected to announce on Monday that it will drop its cap on the amount energy suppliers are able to charge by around £1,000 to £3,295, effective from April 1, according to the latest forecast from energy consultancy Cornwall Insight.
The energy price cap sets a maximum price that energy suppliers can charge consumers for each kilowatt hour (kWh) of energy they use. How much individual households pay depends on how much energy they use.
