Energy prices are outrageous, and even if you do try to cut down your usage and install more energy efficient appliance some energy companies will try and increase your bills every few months anyway. Or is that just me? Either way, it's good to hear that Ofgen has decided it's going to force a cap on annual energy bills, which it hopes will save people between £75 and £120 a year.
The cap being implemented is £1,136 a year, which seems like a figure that's already way too high, but then again I live by myself and have a skewed view of what bigger families will use. It's hoped that the change will save 11 million households money on rubbish deals. On average Ofgen expects there to be a £75 annual saving, which could rise up £120 on the worst value energy deals. Not a huge saving on such a large bill, but the fact that something is being done about the spiralling energy costs is good news.
The cap is set to be put into place by the end of November, with the idea being that energy providers will have to decrease their prices to make sure they fall below the cap. The power to implement it was granted to Ofgen back in July, and the purpose is to ensure people aren't being overcharged for their energy. Hopefully it also prevents then from slapping a fortune in extra charges onto your final bill, should you ever decide to switch providers. The £1,136 number was chosen based on a typical dual fuel customer paying by direct debit.
According to Ofgen the people who are set to benefit the most are the ones on default tariffs, having stayed with an existing provider and put onto a more expensive plan once their initially fixed term contract came to an end.With that in mind you don't need to wait for the cap to come into place to save money, since the chances are you could save a lot more by switching providers.
It's also worth working on your energy efficient too, like ditching the outgoing Halogen bulbs with LED alternatives. The less energy you use, the less the energy companies can try to screw you when bill day comes around. [BBC News]