The Chief Executive Officer of Ofgem has initiated a dialogue about the effectiveness of energy price caps and is advocating for a reevaluation of the current approach.

Ofgem’s boss Jonathan Brearley has expressed reservations about the degree to which the existing energy price cap mechanism is truly aiding financially strained consumers.

In an interview with the Guardian, Mr Brearley has stressed the necessity for a “more comprehensive framework” that can robustly support households grappling with ongoing challenges.

In less than two weeks, Ofgem is set to reveal the winter price cap that will determine the energy price for approximately 29 million households.

Jonathan Brearley said: “It’s not for us to decide, it’s ultimately for ministers. But it’s important that collectively we understand that a very broad and crude mechanism is going to have risks as well as benefits.”

Article source: https://www.energylivenews.com/2023/08/14/ofgem-chief-urges-rethink-on-energy-price-caps/