UK Energy Regulator to Cut Price Cap This Winter
August 07 2019 - 3:02AM
Dow Jones News
By Adria Calatayud
U.K. energy regulator Ofgem said Wednesday that it will cut its
price cap on default tariffs this winter due to lower wholesale
costs.
Ofgem said the cap for retail customers will be lowered to 1,179
pounds ($1,434) from GBP1,254 for the six-month period starting
Oct. 1. The prepayment meter cap will fall to GBP1,217 from
GBP1,242 a year for the same period, it said.
This follows significant declines in wholesale energy price
between February and June due to a combination of low demand during
the winter, strong gas supply and healthy storage levels, Ofgem
said.
"This means the energy bills of around 15 million customers on
default deals or prepayment meters will fall this winter to reflect
the reduction in cost of the wholesale energy," Ofgem Chief
Executive Dermot Nolan said.
The U.K. introduced energy price caps at the start of 2019,
after criticism of high prices being charged by the U.K.'s "Big
Six" energy suppliers--Centrica PLC's (CNA.LN) British Gas, SSE PLC
(SSE.LN), Electricite de France SA (EDF.FR), E.ON SE (EOAN.XE),
Innogy SE's (IGY.XE) Npower and Iberdrola SA's (IBE.MC) Scottish
Power.
Write to Adria Calatayud at
adria.calatayudvaello@dowjones.com
(END) Dow Jones Newswires
August 07, 2019 02:47 ET (06:47 GMT)
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