UK energy watchdog raises energy price cap by 20%

By Burak Bir

ANKARA (AA) - The UK’s energy regulator on Thursday announced a 20% hike in the energy price cap to £4,279 ($5,176), up from £3,549.

The announcement came in Ofgem’s quarterly update to the energy price cap for the period Jan. 1-March 31, 2023.

"Ofgem continues to protect consumers through its ongoing robust regulation of the market, taking enforcement action where necessary and providing support to those who need it the most," the regulator said in a statement.

It added that the price cap for the first three months of next year will increase for dual fuel households paying by direct debit based on typical consumption, however, bill-payers will still be protected by the Government’s Energy Price Guarantee until the end of March 2024, as confirmed by the Chancellor Jeremy Hunt last week.

The price cap was introduced to protect customers from overcharges but has led to many energy suppliers going under as they could not reflect rising energy prices on customers' bills.