A feather in Ofgem’s cap

Watchdog shames British Gas with cut

OFGEM has revealed plans to lower a price cap for hard-up households – just a week after British Gas controversially announced a hike.

The energy watchdog said it was reducing the cap for pre-payment meter customers from October because of “lower forecast costs”. The move will save three million customers up to £19 a year. Yet it comes shortly after British Gas sparked outrage by announcing that it was raising electricity prices for customers on its standard variable tariff by an inflationbusting 12.5%. British Gas blamed the rise on Government need to identify where lower costs can be turned into price cuts for their customers.

“Ofgem’s decision to pass on lower electricity costs to consumers by reducing the level of safeguard tariff for prepayment meter customers is right. “And it will mean that millions of often poorer households will get some relief on their energy bills.

“We also think energy firms should consider how they can take similar action to pass on any reductions for supplying electricity to credit-meter customers, where this is possible.” policies. Ofgem’s

announcement will see the average annual dual fuel bill for prepayment customers cut from £1,067 to £1,048.

It introduced a temporary safeguard tariff in April and will update it every six months based on the estimated cost of supplying energy.

The safeguard tariff is aimed at protecting pre-payment meter customers from shelling out too much for their energy.

Gillian Guy, chief executive of Citizens Advice, said: “Energy suppliers should be looking to follow the regulator’s lead. They