Ofgem boss calls for fair pricing as energy cap to return to pre-pandemic levels

The government’s energy regulator Ofgem has announced today that the energy price cap will increase to pre-pandemic levels from April 1.

Ofgem has confirmed that as a result of changes in wholesale energy prices, the price cap will increase by £96 to £1,138 for 11 million default tariff customers, and by £87 to £1,156 for 4 million pre-payment meter customers.

When wholesale prices fell last year in the wake of the first lockdown, the level of the price cap fell by £84 in October.

Jonathan Brearley, chief executive of Ofgem, commented: “Energy bill increases are never welcome, especially as many households are struggling with the impact of the pandemic. We have carefully scrutinised these changes to ensure that customers only pay a fair price for their energy.

“The price cap offers a safety net against poor pricing practices, saving customers up to £100 a year, but if they want to avoid the increase in April they should shop around for a cheaper deal.

“As the UK still faces challenges around COVID-19, during this exceptional time I expect suppliers to set their prices competitively, treat all customers fairly and ensure that any household in financial distress is given access to the support they need.”