Ofgem, the energy price regulator today recommended* that the price cap stay in place until 2021 and fall by £84 from October this year. Ofgem says:
The changes mean that around 11 million households on default tariffs and 4 million on prepayment meters (around half the population in total) will enjoy significant savings on their energy bills this winter.
This is particularly good news for people facing financial hardship due to Covid-19.
The government introduced the energy price cap last year following an enquiry that proved egregious overcharging by suppliers. It can be removed if and when “conditions for effective competition” are in place. Importantly, the main requirement for ‘effective competition’ is that suppliers won’t again be able overcharge customers on default tariffs.
It seems both industry and regulator accept customers shouldn’t be exploited for being unable or unwilling to switch. For the time being anyway.
* Savings on energy bills this winter as price cap fall Ofgem, 07/08/20