Energy prices for more than 4m British households have been capped by Ofgem, the regulator, in a move to bring down bills for customers with pre-pay meters. On average, Ofgem said the cap would mean that customers who pre-pay for both gas and electricity will not pay more than £1,067 a year from April. This compares with an average of £1,127 at present. The cap was one of the measures recommended by the Competition and Markets Authority last year following a two-year probe into the retail energy market that found that pre-pay customers, including poorer households, have benefited less from competition in the market. But Utilita, an independent energy company that specialises in pre-payment meters, has warned the new price cap will squeeze profit margins in that part of the market to such an extent that suppliers will raise other tariffs.
FT 7th Feb 2017 read more »
Times 8th Feb 2017 read more »