The United Kingdom Office of Gas and Electricity Markets (Ofgem) shared on Monday that it plans to implement a new "dynamic" energy price cap that varies based on the time of day British households consume energy.
The energy regulator stated that it launched a consultation pondering options for the future of the price ceiling, with Ofgem suggesting a "more flexible, market-based price protection such as setting a limit between a supplier's default tariff and tariffs available in the market, capping the margin suppliers are able to make, or replacing the cap with a ban on acquisition only tariffs."
"While the price cap played an important role in protecting consumers from the loyalty penalty that existed before its introduction, the energy market is changing as we move to net zero, and we recognize the systems we have in place may need to change too," Ofgem's Director General of Retail and Markets Tim Jarvis said.
