The cap which limits prices for 22 million households on standard tariffs or pre-payment meters is updated every six months at present and rose by a record 54 per cent to almost 2000 a year in April. The energy price cap will be updated every three months from October under Ofgem proposals to pass on changes in wholesale prices to households more quickly.
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We ran a price cap from 2017 to the end of 2020 for customers using prepayment meters the Prepayment Meter Price Cap and we ran a price cap from 2019 to the end of 2020 for customers on standard variable tariffs the Default Tariff Cap.
. Ofgem considers a range of information when deciding where the price cap should be set. We combined these programmes into a single Default Tariff Cap from 1 January 2021. The price that energy suppliers pay for the gas and electricity they buy is a.
Ofgem backs consumers with price cap update Today Monday 16 May Ofgem will publish a minded-to consultation to look at whether the energy price cap should be updated quarterly rather than every six months.
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