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UK regulator offers price cap on gas, electricity bills

- Cap to give 11 million customers 'fairer deal for their energy', market regulator says

home > Natural Gas, Electricity, Europe, General 06.09.2018 12:28 Hale Türkeş

UK regulator offers price cap on gas, electricity bills

Ofgem, the government regulator for gas and electricity markets in Great Britain, proposed on Thursday a price cap on energy bills, which would save consumers who use a typical amount of gas and electricity around £75 per year on average.

"Over 11 million more households on poor value default tariffs would be protected from being overcharged under proposals announced by Ofgem," a press release read.

This follows Parliament passing the government's Domestic Gas and Electricity (Tariff Cap) Act, which became law on July 19 and gives Ofgem a duty and the powers to put the price cap in place.

"Ofgem is working to have the cap in place by the end of the year," the statement added.

According to Ofgem, when the price cap is introduced, suppliers will have to cut their prices to the level of or below the cap, proposed to be £1,136 per year for a typical dual fuel customer paying by direct debit, forcing them to scrap excess charges for people on poor value default deals.

The exact savings each individual household would make will depend on the price of their current deal, how much energy they use, whether they have both gas and electricity and how they pay for their energy.

According to the statement, many consumers on default deals -- over half of all households in Great Britain -- use more energy than a typical household so their savings would be higher, while those who buy their electricity and gas from different suppliers would also save more.

"A typical consumer on the most expensive tariffs would save over £120. In total, the price cap would save consumers around £1 billion," it said.

Dermot Nolan, chief executive of Ofgem, reassured consumers that any decreases in energy costs would be passed on to them.

"And if costs increase, Ofgem will ensure that any rise will be due to genuine increases in energy costs rather than supplier profiteering," he added.

According to the statement, the first update of the price cap will be announced in February 2019 and come into effect in April 2019. Following this, it will be updated every six months to reflect the latest estimated costs of supplying electricity and gas.

"The price cap is designed to be a temporary measure, in place until 2023 at the latest. This will allow Ofgem to put in place further reforms to make the energy market more competitive and work better for all consumers, including making switching energy supplier easier, quicker and more reliable," Ofgem said.

By Hale Turkes

Anadolu Agency

energy@aa.com.tr



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Turkey-Israel relations may 'normalize' with natural gas

- \"Turkish-Israeli gas deal may precipitate normalization in relations,\" says Director of Turkish Research Program at Washington Institute
09.12.2014 Natural Gas , Upstream , Regulation , Natural Gas , Energy Diplomacy , International Relations

Trans Adriatic Pipeline unaffected by South Stream

- Turkey's contribution is crucial for the planned Trans Adriatic Pipeline to carry natural gas from Azerbaijan to Italy, says Kjetil Tungland, managing director ofTrans Adriatic Pipeline AG
05.12.2014 Natural Gas , Downstream , Regulation , Natural Gas , Energy Diplomacy , Energy Projects

Istanbul Arbitration Ctr. to bring trust to energy feuds

-Energy and Capital Markets Counsel of Roschier, Finland says Istanbul Arbitration Center will bring trust to enery sector if neutral and trustworthy
24.11.2017 Regulation , Oil , Natural Gas

More liberal gas law underway in Turkey, experts

Experts called for a more liberal and flexible law to facilitate imports
25.11.2014 Regulation , Oil , Natural Gas

Nuclear power, a vital option of domestic energy supply

- Nuclear power plays an increasingly important role in the world's energy mix
25.11.2014 Electricity , Nuclear , Regulation , Natural Gas

North-south gas corridor report ends Istanbul energy summit

- Summit ends with discussion of new gas facility in Europea that would 're-energize U.S.-European relations,' one participant says.
22.11.2014 Natural Gas , Downstream , Regulation , Natural Gas , Energy Diplomacy , Energy Security

Global energy body not realistic

- The claims of cooperation between Russia and Saudi Arabia in building a new \"Global Energy Body\" are not realistic, according to experts.
18.11.2014 Regulation , Natural Gas , Energy Diplomacy , International Organization

Turkey best route for Israeli gas delivery: Ambassador

- Best way to deliver Israeli natural gas to Europe through Turkey, Ambassador of Turkish Republic of Northern Cyprus says.
15.11.2014 Natural Gas , Upstream , Regulation , Natural Gas , Energy Diplomacy , International Relations

US gas exports to accelerate with Republicans in senate

- US liquefied natural gas exports are expected to accelerate with the Republicans in control of the Senate, say experts
14.11.2014 Natural Gas , Lng/Lpg , Regulation , Natural Gas , Energy Diplomacy , Energy Security

Turkey announces new energy targets / Effective management of resources

Turkey’s new energy targets announced by Turkey's Energy Minister Taner Yildiz in Ankara at parliament’s 2015 budget meetings on Thursday.
13.11.2014 Regulation , Natural Gas

EU's new gas funding incompatible with CO2 targets

- Funding gas interconnection projects may contradict EU's carbon emission goals while electricity projects may benefit from supply security in the long term
05.11.2014 Regulation , Natural Gas , Electricity

Increasing private gas sector is Turkey’s key to EU

-Turkey’s energy action plan to access EU is to increase private sector participation in the natural gas market
03.11.2014 Regulation , Natural Gas , Renewable

Turkey-Africa Partnership: A Win-Win Model

- Selim Bora, a Turkish businessman who has investments in Africa, said countries located in West and Sub-Saharan Africa that are inherently linked to French companies, grow tired of the trade status quo and are looking for alternatives.
02.11.2014 Finance , Regulation , Invesments , Natural Gas

US LNG exports to rise gas prices, but aid economy

- Increased liquified natural gas exports would increase natural gas prices in the U.S., but would lead to higher levels of economic output, says U.S. Energy Information Administration
31.10.2014 Natural Gas , Lng/Lpg , Regulation , Natural Gas

Canada progresses towards exporting LNG to Asian market

TransCanada's gas pipeline gets environmental approval allowing Canada to near its goal of exporting LNG to Asian markets
27.10.2014 Natural Gas , Finance , Lng/Lpg , Regulation , Projects , Natural Gas

EU to invest in new Baltic gas projects

- European Union to fund new energy projects on gas from the Caspian Sea region and Middle East to Europe
26.10.2014 Natural Gas , Downstream , Regulation , Natural Gas

US Boeing, COMAC to turn gutter oil into biofuel

- Boeing, COMAC open a facility to transform gutter oil - used cooking oil, into Aviation Biofuel
24.10.2014 Renewable , Geothermal/Biomass , Regulation , Natural Gas

BP awards contracts for its $12 billion LNG project

- British Petroleum awarded the onshore FEED contracts for its $12 billion Tangguh LNG expansion project to two consortiums in Indonesia
23.10.2014 Natural Gas , Finance , Lng/Lpg , Regulation , Projects , Natural Gas

Gas export terminal project clears a key federal hurdle

-With only six export terminals for Liquified Natural Gas operating in the U.S., and fewer than 30 in the world, the project by gas exporter Cheniere is seen as promising by industry analysts
09.10.2014 Finance , Regulation , Projects , Natural Gas

Turkish energy market rising in Europe: EWE Turkey head

- Turkish gas market set to become one of the largest three European energy markets in near future, says energy company head
07.10.2014 Natural Gas , Upstream , Regulation , Natural Gas

Turkey needs to liberalize its gas markets, expert says

- \"The Turkish government needs to maintain investors' interest in its natural gas sector, in order to create a more competitive electricity market\", European Federation of Energy Traders board member says
29.09.2014 Regulation , Natural Gas

U.S. approves gas exports of two projects

- The U.S. Department of Energy approved two projects on Wednesday to export liquified natural gas to countries that the U.S. does not have a free trade agreement with
11.09.2014 Natural Gas , Finance , Lng/Lpg , Regulation , Projects , Natural Gas

Ukraine violence spooking Western energy firms

Shale gas explorations in Ukraine are on pause as Western companies observe ongoing violence.
27.08.2014 Natural Gas , Finance , Shale/Unconventional , Regulation , Projects , Natural Gas
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