As part of a new ‘Energy Retail Strategy’ unveiled today, the Government said it plans to introduce legislation to allow the price cap to continue beyond 2023 if needed. Existing legislation already provides for annual extensions until 2023, if recommended by the energy regulator Ofgem.
Some 11 million households are currently covered by the price cap, set at £1,138/yr for a typical dual-fuel (gas and electricity) household. This cap is reviewed twice a year, with changes coming into effect in April and October. In the next review, due on 6 August, the cap is expected to rise by over £100 from October to around £1,250/yr.
But if you’re on one of these capped tariffs, you’re free to switch away at any time. If you find choosing a new energy tariff confusing, try our free Pick Me A Tariff tool to find the cheapest deal based on your preferences. Or you can do your own full-market comparison via our Cheap Energy Club. Just bear in mind savings are likely to be massively underestimated as they’re based on today’s prices and don’t factor in the likely £100+/yr you’ll save from avoiding the expected October price cap hike.