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Daily Mirror
Daily Mirror
Business
Sam Barker

Join the Mirror LIVE as our experts explain what energy bill changes mean for you

British households are about to see two major changes to their energy bills - these will go up and down much faster and we could pay more for longer.

Rules announced this week would see bill limits reviewed four times a year , rather than the current two.

Ofgem is reviewing its price cap , which limits how much consumers pay for energy.

The price cap works by limiting how much the average home pays for power every year, if they pay by direct debit on a variable rate tariff.

The price cap is currently reviewed once ever six months.

Ofgem is now consulting on doing this every three months.

Join our latest Cost of Living Facebook Live broadcast at 1pm TODAY (May 19) on the Daily Mirror Facebook page

Ofgem is also planning to hike the fee one energy firm pays another if it takes its customers when gas prices fall.

The energy regulator wants to bring in a fee payable by energy firms that bring out cheap deals - and it is under fire for being uncompetitive.

fgem's reasoning is that this fee will help energy firms stay trading, but Lewis thinks it is bad news for consumers.

That is because energy companies buy power before they need it, then sell it to consumers.

So if energy firm A buys energy at high prices, then energy firm B brings out a much cheaper deal, A could lose out by being pressured to sell energy for less than it bought it for.

Dozens of energy firms collapsed last year due to having to sell energy for less than they paid for it.

To stop this happening again when gas prices fall, Ofgem's solution is the 'market stabilisation charge'. This is a fee that energy firm B would pay to energy firm A for taking its customers if gas prices fall.

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