 |
answer text |
<p>The price cap is revised every 6 months so that it is consistent with the underlying
costs of supplying energy to households. Determining efficient costs is inherently
challenging, but this is the product of Ofgem’s wide-ranging and in-depth benchmarking
exercise. The Government has complete confidence in Ofgem, as the independent regulator
of the GB gas and electricity markets, to appropriately execute its expert judgement
in this regard. Ofgem estimate that the average household is £75-£100 better off each
year than if the price cap was not in place. Consumers on capped tariffs can save
even more my shopping around for a cheaper tariff. In addition, the Government’s Energy
Company Obligation (ECO) and expanded Warm Home Discount (WHD) schemes will provide
at least £4.7 billion of extra support to low-income and vulnerable households between
2022 and 2026.</p>
|
 |
