Justina Miltienyte, head of policy at Uswitch.com said: “Updating the price cap on a quarterly basis would mean a second update hot on the heels of October’s expected increase in rates.
“This could demand a swift revision to household budgets at one of the most expensive times of year, raising the possibility of a painful New Year hangover.
“Until now, the price cap has at best acted as a delay mechanism for the pain of rising wholesale prices, but it is unable to prevent harsh increases hitting customers altogether. A quarterly review means that the ability of the cap to delay the pain of rising prices is shorter.
“Conversely, if wholesale prices start falling, Ofgem would have the ability to pass these through to those on standard plans a little sooner.
“The price cap has always been a sticking plaster to deal with the problems of the energy market, and this proposed change is another attempted quick fix. The cap fails to give real, meaningful help to those who need it the most and this has been brought into extreme focus as costs have rocketed. More fundamental longer-term reform is still needed.”
FOR MORE INFORMATION
Prisca Simango
Phone: 07971 093 512
Email: prisca.simango@rvu.co.uk
Twitter: @UswitchPR
About Uswitch
Uswitch is one of the UK’s top comparison websites for home services switching, including energy, broadband and mobiles.
More people go to Uswitch to switch their energy, broadband and mobile than any other site, and we have saved consumers over £2.7 billion off their bills since we launched in September 2000.
Free mobile app Utrack also helps households manage their home energy usage and make potential savings.
Uswitch is part of RVU, a group of online brands with a mission to empower consumers to make more confident home services, insurance and financial decisions.
