Energy Bills and the Price Cap News: page 9
- February 2024
Ofgem introduced the Float temporary debt allowance
Ofgem has opened a consultation on whether the temporary debt allowance it added to the energy price cap in February 2024, known as the Float, was set at the right level.
Ofgem levelisation decision opens potential phase 2 on debt-related costs
Ofgem has said it could consult on levelling debt-related costs between Standard Credit and Direct Debit customers, as part of a wider review of price cap operating cost allowances.
Ofgem lowers price cap by around 12% for domestic energy bills
Ofgem has lowered its price cap for domestic energy bills by around 12% from April 2024, but gas and electricity costs remain 60% higher than in 2021, according to the End Fuel Poverty Coalition.
Ofgem sets out contingency proposals for price cap methodology
Ofgem has set out more detailed proposals for amending the price cap methodology if legislation on an energy intensive industry exemption is not in place by 1 April 2024.
Price cap announcement applies discount to prepayment standing charges
The February 2024 price cap announcement applied a discount to prepayment standing charges, making prepayment slightly cheaper than standard credit for the first time.
- January 2024
Minimum Supply Prices from 1 February 2024 added
Government guidance for heat network support under the Energy Bills Discount Scheme was updated on 31 January 2024 to set out the Minimum Supply Prices applying from 1 February 2024.
Warm This Winter releases third Tariff Watch report on standing charges
Warm This Winter's third Tariff Watch report identifies 14 obscure charges inside the Ofgem price cap that it says have pushed electricity standing charges up 119 per cent since winter 2020/21.
NEA publishes response to additional debt-related costs allowance policy consultation
National Energy Action has published its response to the consultation on an additional debt-related costs allowance, saying record market debt and arrears of £2.6bn show households are falling behind on energy costs.
NEA publishes response to prepayment meter standing charges consultation
National Energy Action has published its response to the statutory consultation on prepayment meter standing charges and other debt costs, restating its long-standing call to remove payment premiums.
Coalition members call for social tariff in Spring Budget
End Fuel Poverty Coalition members called in January 2024 for a social tariff to be included in that year's Spring Budget, as part of a long-running campaign for energy tariff reform.
Consumer Scotland responds to Ofgem's Standing Charges Call for Input
Consumer Scotland has told Ofgem that moving standing charges onto unit rates in isolation would hit Scottish, disabled and electric heating households hardest, and that the regulator's own modelling does not justify the change.
UK energy debt reported at just under £3 billion
The British Gas Energy Trust has reported that the UK is in just under £3 billion of energy debt, as the price cap rose about 5 per cent on 1 January 2024.
Ofgem energy price cap to rise by 5% from January 2024
Ofgem's energy price cap rises 5% from 1 January 2024, taking a typical household bill from £1,834 to £1,928 a year, with prepayment and cash or cheque customers paying more.
Ofgem price cap from January 2024 puts EPC band F gas bills £415 above band C
Analysis by the Energy and Climate Intelligence Unit finds gas bills in EPC band F homes will average £415 a year more than band C homes under Ofgem's price cap from January 2024.
Ofgem price cap rises in January 2024
A quarterly Tariff Watch report from the Warm This Winter coalition says 14 obscure charges, passed through standing charges, are keeping electricity bills at record levels after January's price cap rise.
Price cap expected to rise around 1% in January 2024
Cornwall Insight expects the Ofgem price cap to rise by around 1% in January 2024 after European gas prices rose again, taking a typical annual bill to about £1,932.
Price cap increases on 1 January 2024
National Energy Action marked the 1 January 2024 price cap rise by saying 6.1 million UK households are now in fuel poverty, 1.6 million more than when the energy crisis began.
Record month for prepayment meter top-up help
Citizens Advice helped a record number of people who could not afford to top up their prepayment meter in January 2024, with energy debt also at record levels.
- December 2023
Ofgem consults on making no wholesale cost adjustment to the price cap for October 2022 to September 2023
Ofgem has proposed making no adjustment to the energy price cap for wholesale costs incurred between October 2022 and September 2023, with responses to its consultation due by 17 January 2024.
Ofgem consults on one-off £16 price cap adjustment to recover bad debt costs
Ofgem has opened a consultation on a one-off £16 price cap adjustment, paid between April 2024 and March 2025, to let suppliers recover bad debt costs, with prepayment meter customers excluded.
Ofgem decides not to adjust price cap for Winter 22/23 wholesale variances
Ofgem has decided not to adjust the energy price cap for wholesale cost variances over Winter 22/23, and is consulting on a one-off £16 adjustment to cover bad debt.
Ofgem implements new consumer contact and customer service rules
Ofgem's new rules on contacting suppliers, support for customers in difficulty and publishing customer service performance took effect on 14 December 2023, after the fieldwork for its latest satisfaction survey.
Hydrogen levy changed to apply to gas shippers rather than energy suppliers
The planned hydrogen levy on household gas bills has been moved onto gas shippers rather than energy suppliers, after the original proposal drew a backlash, according to a Nesta report on energy levies.
Ofgem consulted on a wholesale cost adjustment to the price cap and technical changes to the Annex 2 model
Ofgem has set out minded-to positions on whether to adjust the energy price cap for wholesale costs incurred between October 2022 and September 2023, alongside proposed technical changes to its Annex 2 model.
Petitions with over 800,000 signatures handed to the Prime Minister on energy bills and cold homes
Petitions carrying more than 800,000 signatures have been handed to the Prime Minister, as new figures show 8.3 million UK adults living in cold damp homes this winter.
- November 2023
Prepayment meter regional rates for January to March 2024 added
The government has published Energy Price Guarantee regional unit rates and standing charges for prepayment meters covering January to March 2024, the final quarter of the scheme.
Energy Bill Support Scheme ends
The government's £400 Energy Bill Support Scheme has ended, with analysis published the same day finding poorly insulated homes will pay over £400 more to heat than homes at the government's efficiency target.
Ofgem to announce January 2024 unit rates
Which? has said its published appliance running costs will be updated once Ofgem announces January 2024 unit rates, with those rates and the running costs expected to rise.
Ofgem publishes updated default tariff cap levels for 1 January to 31 March 2024
Ofgem has set the default tariff cap for 1 January to 31 March 2024, raising the dual fuel direct debit level to £1,928, a 5% increase on the previous quarter.
Statutory Consultation on levelling standing charges published
Ofgem has published a statutory consultation to level standing charges so prepayment and direct debit customers pay the same daily charge, alongside a price cap rise of 5% from January 2024.