Ofgem Proposes Revisions to Energy Price Cap

The energy regulator is considering dynamic and market-based adjustments to the price cap to reflect changing consumption patterns and protect consumers.

Ofgem has initiated a consultation to explore options for revising the energy price cap, including dynamic pricing and market-based protections.
The proposed changes aim to accommodate the shift towards renewable energy and evolving consumer behaviors, such as the use of electric vehicles and solar panels.
Options under consideration include a dynamic cap based on time-of-use and targeted protections based on vulnerability.
The revisions seek to protect consumers from loyalty penalties and volatile market conditions, while promoting flexibility and fairness in energy pricing.
The consultation is open until May 6, inviting input from government, industry, consumer groups, and the public to ensure the market works for everyone.