The Ofgem sign outside the  electricity and gas industry regulator's office in Millbank, central London. PRESS ASSOCIATION Photo. Picture date: Tuesday October 22, 2013. Photo credit should read: Yui Mok/PA Wire

Proposed energy price cap creates confusion

Fresh confusion and uncertainty over the government’s planned energy cap.

Following the Prime Minister’s announcement of the implantation of an energy price cap on Wednesday Ofgem, the energy regulator, has delayed its announcement on proposals to protect vulnerable customers.

The publication has been delayed until next week, prompting an industry source to comment “Now they have no idea whether they are going to go ahead or not”.

It is thought that legislation could take up to a year to pass Parliament. The energy minister Greg Clark however said that if Ofgem “acted straight away” the price cap could be in place this weekend.

In August, British Gas owner Centrica produced figures showing that government energy policies, including green subsidies, now made up a greater share of consumer bills than the wholesale cost of electricity, having risen by 104% since 2014.

Green levies are expected to cost households £110 a year each on average by 2020, according to the National Audit Office.

Leave a Comment

Your email address will not be published. Required fields are marked *