Next Household Energy Price Cap Announcement Delayed

The energy regulator (Ofgem) has announced today a delay in formalising the level of the next household price cap until late November, early December 2023 to make sure that the analysis and calculations are “robust”.

In an open letter addressing the ongoing review of wholesale costs, Ofgem also outlines a framework for assessing whether an adjustment to the cap on energy prices is warranted and invites stakeholders to provide their views and comments on the matter by 23rd October.

Any delays as a result of the consultation might also impact on the implementation date of any price adjustment which could mean that it moves from the 1st January 2024 to the 1st April 2024.

It is clear with prices stabalising Ofgem is revising its approach to regulating the market so that it better adapts to the changing market conditions with the aim of determining whether an adjustment to the price cap is necessary, in either direction.

As a business, you are not protected by any price cap afforded to household customers. It has therefore never been more important to track wholesale energy trends with our weekly bulletin. You can even subscribe and receive the latest market trends delivered to your inbox every Monday morning.

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