Energy price cap update | E.ON
You’ll have seen the energy regulator, Ofgem, has published its latest energy price cap which is based on current market conditions.
The latest price cap – which will come into effect from 1st April 2022 for affected customers – follows massive upheaval in the energy market since the end of last year, which has caused a significant rise in costs.
Prices for gas and electricity on global markets have risen sharply to almost record levels, at one point climbing from 50p per unit to over £4 in just a few days. This means the costs suppliers have to pay to provide the heat and light that their customers need have gone up similarly.
Added to that, close to 30 suppliers have left the market since August 2021, leaving remaining suppliers and customers to pick up the hundreds of millions of pounds in debts they’ve left behind.
There is also a range of government levies and support schemes that are paid mostly through your electricity bill rather than through taxes. These are all added into the equation when it comes to setting the new price cap.