Energy UK comments on Bulb's energy price cap research
Responding to Bulb's latest research on the energy price cap, Lawrence Slade, Energy UK’s chief executive said:
“We have previously warned of the unintended consequences of price caps including the risk of that prices can often converge around the level set.
“The price cap presents a significant challenge for many suppliers in the retail market in what is evidently a difficult climate with a number of providers exiting the market in recent months. Suppliers are already facing steeply rising costs the vast majority of which are out of their direct control, including wholesale costs which have increased by well in excess of 30% in the last year. As Ofgem have indicated, if costs continue to rise then the cap will have to increase to reflect this in future.
“So we must continue to encourage more customers to engage and benefit from the large savings that can be made by switching which exceed those delivered by the cap - and from fixed price deals which can protect against potential future rises.”