Energy bills could rise and fall in a quicker fashion, after Ofgem confirmed that it will update its price cap four times a year.
The regulatory body currently updates the threshold twice a year, in April and October, but going forward, it will additionally hold reviews in January and July.
The move means that millions of householders in receipt of a variable tariff will see more frequent alterations to their energy bills, at a time when many are feeling the squeeze of the cost of living crisis which has blasted the United Kingdom.
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The Mirror reports that Ofgem say the idea of reviewing the price cap more frequently is so energy companies can provide far more accurate pricing of units for customers. It comes as energy bills continue to soar across the board, with experts predicting that October's price cap change could hit up to £3,359.
However, Ofgem have not indicated how much the change will be yet, and will announce this figure on August 26.
Energy experts at Cornwall Insight are panicked that a further rise to £3,616 will come at the turn of the year in January. The price cap was last adjusted in April earlier this year, where it rose from £1,277 to £1,971 per year on average.
Ofgem first confirmed it would consult on frequency changes to the price cap back in May this year, with CEO Jonathan Brearley, acknowledging that current energy price rises are "deeply worrying" - and warned households face higher prices than ever before.
He said: "Today’s changes ensure the price cap does its job, making sure customers are only paying the real cost of their energy, but also, that it can adapt to the current volatile market. We will keep working closely with the Government, consumer groups and with energy companies on what further support can be provided to help with these higher prices."
Gillian Cooper, head of energy policy at Citizens Advice, said: "Changing to a quarterly price cap should limit the risk of any more suppliers going bust, which is a good thing. But our bills are already incredibly high and still rising.
"The Government was right to bring in financial support for people, but it may not be enough to keep many families afloat. It must be ready to act again before winter draws in."
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