In Ofgem’s statement, it said that as prices come down and profits return, it expects suppliers to act responsibly and in the interests of their customers. This stabilisation of energy prices can be reflected in Cornwall Insight’s latest price cap prediction for Q4 2023.Ĭornwall Insight decreased the forecast of energy prices per year for a typical household from £1,978.33 to £1,871.28 in Q4 2023 for electricity and from £2,004.4 to £1,900.52 for gas in Q1 2024.ĭespite the welcome decrease, it is important to note that energy prices remain significantly higher than pre-pandemic levels. This letter comes as current forecasts see energy prices reducing steeply in comparison to the prices witnessed throughout 2022 at the peak of the energy crisis. This calls suppliers to instead use profits to support customers as opposed to paying out shareholders. In the letter, he stated that Ofgem will be “ready to act against suppliers” that do not yet have sufficient capital if they use profits for paying dividends above recapitalising. In a statement released today (4 July), the energy regulator stated that it “expects suppliers to act responsibly and in the interests of their customers and will act to amend the price cap rate and methodology to ensure that it continues to fairly reflect costs as market conditions change”.īrearley also outlined his intention to enforce this. Ofgem CEO Jonathan Brearley has written to all energy suppliers warning that they must learn their lessons from the energy crisis and “act in the interests of their customers” instead of dividends.
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