Energy price hikes could become smaller but more frequent under proposals from Ofgem. Here is a look at what impact the changes could have on customers and what those who are worried about bills can do in the meantime:
What impact could reviewing the price cap more regularly have on customers?
Instead of just having changes in October and April, there could also be reviews added in January and July - meaning prices are reviewed quarterly rather than every six months. Ofgem, which is consulting on the issue, said a more frequent price cap would reflect the most up-to-date and accurate energy prices - meaning when prices eventually fall from current record highs, customers would see the benefit sooner.
Myron Jobson, senior personal finance analyst, interactive investor, said smaller but more frequent price changes may be more palatable than less frequent but sharp price hikes. The energy price cap is currently at a record £1,971 per year for the average household and it is expected to jump sharply again in October.
