LONDON (Reuters) – Britain’s energy regulator proposed on Thursday a price cap on default dual fuel energy bills of 1,136 pounds a year, saving households between 75 and 120 pounds a year.
The regulator, Ofgem, said it would review the price cap twice a year until 2023, by which time it aims to have introduced measures that would increase competition in the UK electricity and gas markets.
“Ofgem is working to have the cap in place by the end of the year,” it said in a statement, adding that the price cap would protect around 11 million customers.
Home power bills have doubled in Britain over the past decade despite liberalisation of the market and an expansion of the number suppliers. Customers on the standard variable tariff now pay on average around 1,185 pounds a year for their energy.
(Reporting by Sabina Zawadzki; editing by Jason Neely)