Ofgem has confirmed the default tariff cap is to fall by £1,200 after wholesale energy costs more than halved in recent months. Yet the decrease will be £426 in real terms as the government has been protecting consumers with the Energy Price Guarantee (EPG), which effectively capped bills at £2,500. The energy regulator has also announced that it will begin consulting on increasing the element of the price cap that covers profit margin, to enable suppliers to make "reasonable" returns.
Plummeting wholesale costs see price cap fall by £1,200
