Ofgem’s price cap means homes with pre-payment meters will now pay more than £100 a year less than the average of the Big Six suppliers’ standard tariffs Gareth Fuller/PAElectricity prices for three million households have been cut by up to £19 a year after Ofgem lowered the level of a price cap for customers with pre-payment meters. The regulator said falling wholesale prices and lower-than-expected policy costs meant the cap, introduced in April at the recommendation of the competition watchdog, needed to be reduced for the next six months from October. The announcement comes amid heightened scrutiny of energy costs after British Gas last week raised electricity prices for its standard tariff customers by 12.5 per cent, blaming a combination of rising policy and network costs. Ofgem’s decision means that a typical household with pre-payment meters will now pay a maximum of £1,048 a year for their gas and electricity, down from £1,067…

Source: The Times August 07, 2017 10:52 UTC