- Britain’s energy price cap could be scrapped in 2024.
- Households pay nearly £2,500 a year on their energy bills.
Britain’s energy price cap could reportedly soon be a thing of the past as officials are considering scrapping it when the government’s energy bill package ends in October 2024.
The price cap sets the maximum amount energy companies can charge per kWh. Recently, officials from the energy regulator and the Department for Business, Energy and Industrial Strategy are discussing various energy market reforms, including scrapping the cap.
The price cap in its current form could allegedly come to an end when the government’s energy bill package expires in two years.
For the next two years, the government has introduced the Energy Price Guarantee, which reduces the unit cost of electricity and gas so that a household with typical energy consumption pays, on average, nearly £2,500 a year on their energy bills.
Many critics of the price cap mechanism had previously raised concerns about its fit-for-purpose role in the current economic environment.