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UK energy price cap to be updated every three months

Graham Watson

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.

Graham Watson

Graham Watson has taught Economics for over twenty years. He contributes to tutor2u, reads voraciously and is interested in all aspects of Teaching and Learning.

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