British Gas has confirmed it is raising prices on its standard variable tariff (SVT) by almost £100 to bring it in line with the price cap, the first supplier to do so. The news comes following Ofgem's plans to raise the cap following a rise in wholesale prices, with other major suppliers likely to follow suit.
Business secretary Alok Sharma has announced the government will extend the default tariff cap until "at least" the end of 2021. He said that so far the cap had saved customers around £1 billion a year, equivalent to around £75-100 annually for typical households on default energy tariffs
Only a quarter of customers said they were satisfied with the time it took their energy supplier to resolve a complaint, a new report from Ofgem has found. Its latest quarterly review of consumer perceptions found that 38 per cent of complaints took more than a month to resolve – an increase of 10 per cent from the previous quarter.
Lower wholesale costs have seen a £17 reduction in both the default and pre-payment meter (PPM) caps, Ofgem has announced. The energy regulator has also provided a breakdown of how the cap is calculated.
The Energy Ombudsman told Utility Week's Customer Summit that now consumers have become accustomed to the price cap, it will be difficult to remove. Ofgem director Anthony Pygram was also speaking at the event and said the Conservative manifesto was not very clear on the next steps for the cap.
BEIS has claimed "new data", published in 2018, shows £1 billion has been saved in 2019 as a result of the price cap. Research from Comparethemarket.com however found the price cap to be more of a "hindrance" rather than a help.
The introduction of the energy price cap one year ago was a game-changing moment for the sector. But, 12 months on, what tangible differences in the sector can be attributed to the cap, and what does a Conservative majority government mean for its future direction?
Utility Week's Election 2019 Manifesto urges the next government to properly address the future of the default energy price cap. Specifically, a rigorous review which is independent of government and Ofgem should take place.
In response to a Utility Week piece regarding the future of the energy price cap Greg Jackson, chief executive of Octopus Energy, makes the case for a permanent price cap. He cites the comparison with the minimum wage and its effect on employment.