LC special issue 3
27 October 2022
Ofgem is the energy regulator that, among other things, is currently charged with coming up with a price cap for our energy costs every three months. Our energy costs consist of two parts. The gas and electric we consume is charged at a per unit rate for every unit we consume. And then there is a standing charge.
The cost of gas or electricity may vary according to the different tariffs that the various companies charge, but for any one company on any one tariff, the amount you pay for each unit will not vary whether you live in Yeovil or York. At the present time, Ofgem is regulating these charges so that customers are protected with a ceiling on the price we pay. That ceiling is reviewed every 3 months.
For gas customers, the same principle is applied to the standing charge too.