The Courier & Advertiser (Fife Edition)
Ofgem unveils new energy price cap
The energy regulator has confirmed it will pursue even tighter restrictions on how much profit energy companies can make, in a move it said will result in lower prices for customers.
Ofgem has unveiled its desired methodology for the second energy price cap, which is expected to save consumers around £6 billion over the five years to 2026.
The method sets the allowed baseline return on equity at 4.3% in a cost of equity range of between 4% and 5%.
This is almost half the limit imposed in the previous cap and would be the lowest ever capital rate for energy network companies.