In the News
UK energy price cap to be updated every three months

4th August 2022
OFGEM has announced that the energy price cap is going to be altered every three months, to better to reflect the latest in changes in costs, rather than bi-annually.
The move, however, has not been well received by some who seem to be of the view that it's weighted in favour of the energy companies who, some argue, are being protected against downside risks of rising costs, rather than consumers.
And factor in a little bit of Keynesian economics - and the fact that prices tend to be sticky in a downwards direction - and you can see why some people are nervous about this change.
Ofgem confirms energy price cap to be updated every three months https://t.co/KCHgY6tBaJ
— The Guardian (@guardian) August 4, 2022
Ofgem move to alter UK energy price cap slammed by campaigners https://t.co/WURd8UaqDd
— FT Economics (@fteconomics) August 4, 2022
If today's surge in energy prices is sustained, Ofgem's price cap likely will be c.23% higher in April than in October (when it will jump by c.65%). That would represent a fresh 1.7% hit to real disposable incomes. The next PM must ramp up support massively to avert a recession pic.twitter.com/WgK7myH6Qx
— Samuel Tombs (@samueltombs) July 27, 2022
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