Uswitch comments on Ofgem's confirmation of the new quarterly price cap
Justina Miltienyte, head of policy at Uswitch.com, said: “The price cap has always been a sticking plaster to deal with the failures of the energy market. This proposed change is another attempted quick fix, aimed at helping suppliers rather than customers who are unable to switch to a better deal to escape its impact.
“A quarterly review will mean that consumers are less shielded from rising prices in the short term. The next price change due on 1 January - just after Christmas - is already expected to increase from the price projected in October.
“The more frequent review will eventually mean that if wholesale prices start falling, Ofgem will be able to pass these cuts onto bill-payers a little sooner. However, it is too early to predict when that will happen, as the market remains volatile.
"The cap fails to give real, meaningful help to those who need it the most and merely kicks the can down the road of the costs being passed through to customers on price capped tariffs.
“This has been brought into extreme focus as costs have rocketed and the majority of customers are now being impacted by these changes. More fundamental longer-term reform is still needed for the long term.”
About Uswitch
Uswitch is one of the UK’s top comparison websites for home services switching, including broadband, mobiles, SIM Only and insurance. We’ve saved consumers over £2.5 billion off their bills since we launched in September 2000.
In 2022, Uswitch launched its free mobile app, Utrack, to help consumers manage their home energy costs. By connecting to their smart meter, users can track their energy usage hourly, get dynamic insights and calculate potential savings with handy tips.
Uswitch is part of RVU, a global group of online brands with a mission to empower consumers to make more confident home services, insurance and financial decisions.