Energy price cap: Ofgem considers varying cost based on time of day

Energy prices could change at different times of the day.

The watchdog Ofgem is to consider introducing a new “dynamic” price cap based on the time of day British consumers use their energy.

This would mean a “more dynamic cap” with “time-of-use dependent unit rates to encourage consumer flexibility”.

Ofgem said the price cap, along with the temporary ban on acquisition-only tariffs, had worked well to protect customers from the “loyalty penalty”, where customers on default tariffs paid higher prices, and from the worst of the recent volatile markets and wholesale price surges of the energy crisis.

It said gas and electricity retail markets were changing as increasing numbers of consumers changed their consumption and begin using electric vehicles, heat pumps and solar panels.

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Read the full article on The Guardian website:

https://www.theguardian.com/money/2024/mar/25/energy-price-cap-ofgem-great-britain