Britain’s energy price cap could reportedly soon be a thing of the past.
The price cap sets the maximum amount that energy companies are allowed to charge per kWh.
According to The Telegraph, officials from the energy regulator and the Department for Business, Energy and Industrial Strategy are discussing various energy market reforms, including scrapping the cap.
The price cap in its current form could allegedly come to an end when the government’s energy bill package expires in two years.
For the next two years, the UK government has introduced the Energy Price Guarantee, which reduces the unit cost of electricity and gas so that a household with typical energy consumption pays, on average, nearly £2,500 a year on their energy bills.
Many critics of the price cap mechanism had previously voiced concerns about its fit-for-purpose role in the current economic environment.
Ofgem declined to comment.
