Energy Regulator Puts a Price Cap on Electricity Bills to Protect Poorer Consumers

By Gary Cutlack on at

Energy regulator Ofgem is finally done with two years of meetings and group emails on what to do about public fury aimed at the profits made by the energy suppliers, with one of its big ideas being the introduction of a price cap for PAYG meter users that it says will save the average user around £75 per year.

That's according to Ofgem, which says this interim price cap will be in place by next April and is but the first in a series of changes designed to stop everyone getting furious whenever one of the "big six" power infrastructure companies announces its latest series of record profits and executive bonuses as old ladies shiver beneath blankets.

The sad news is that it says around two-thirds of energy customers remain "disengaged" from the industry, meaning they don't bother checking their usage or switching suppliers to get better deals. To help them, Ofgem has asked for energy companies to create "more effective prompts" on their bills and letters to investigate deals and potentially switch suppliers, and will continue pushing its Be An Energy Shopper campaign to promote shopping around to shave pence off the kilowatt hours of the nation. [Ofgem via BBC]

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