Energy regulator unveils price cap plans for ‘vulnerable’ households
Around a million households who receive the Warm Home Discount should save an average £120/year on their energy bills when the regulator extends its prepay price cap to some credit meter customers within the next few months.
Ofgem says it will then plan to further extend the cap to two to three million more vulnerable households for winter next year, as part of a series of plans announced today to tackle high energy prices.
The price cap for vulnerable households is separate to plans for a wider cap on all standard variable tariffs, which was announced by the Prime Minister Theresa May last week. The Government is expected to give more details of how that could work when it unveils new draft legislation on Thursday.
Ofgem today also announced new rules which will allow suppliers to roll customers coming to the end of their fix onto another fixed deal, and proposals for automatic compensation when energy switches go wrong.