The price cap on household energy bills could be reviewed every three months under new plans mooted by Ofgem on Monday. The energy regulator said that it might insert two new reviews a year, one in January and another in July.
It would help pass on savings from a potential fall in gas prices to customers more rapidly, Ofgem said, and also protect under-pressure energy suppliers from being damaged by the cap.
“Today’s proposed change would mean the price cap is more reflective of current market prices and any price falls would be delivered more quickly to consumers,” said Ofgem chief executive Jonathan Brearley.
