UK Energy Secretary, Grant Shapps, is reportedly contemplating adjustments to the household energy bill price cap, initially introduced in 2019 to prevent excessive charges by energy companies.
This cap, regulated by Ofgem every quarter, sets a limit on what households can be charged.
Sources suggest that these potential changes are aimed at reinvigorating competition within the energy market.
An unnamed insider informed Bloomberg that Mr Shapps is presently evaluating the cap’s effectiveness, although scrapping it is not currently under consideration, and no immediate decisions are imminent.
Advocates are pushing for modifications to the government’s energy pricing approach.
They propose the introduction of a social tariff to aid households struggling with energy costs.
Citizens Advice, a consumer advocacy group, also champions this social tariff concept.
Campaigners highlight that many low income families, who do not qualify for existing bill assistance programmes like the Warm Home Discount, could find relief through this alternative approach.
