UK Energy Regulator Ofgem Raises Price Cap

By Adam Clark

U.K. energy regulator Ofgem said Thursday that it will raise its price cap on default tariffs from April due to higher wholesale energy costs.

Ofgem said the cap for retail customers will rise by 117 pounds ($152) to GBP1,254 a year from April 1. The regulator adjusts the limit twice a year to reflect the estimated costs of electricity-and-gas supply.

The price cap was introduced at the start of 2019 and was expected to cut GBP1 billion from consumers' bills.

The measure was introduced after regulatory criticism of high prices being charged by the U.K.'s "Big Six" energy suppliers--Centrica PLC's (CNA.LN) British Gas, SSE PLC (SSE.LN), Electricite de France SA (EDF.FR), E.ON SE (EOAN.XE), Innogy SE's (IGY.XE) Npower, and Iberdrola SA's (IBE.MC) Scottish Power.

Write to Adam Clark at [e-mail]; @AdamDowJones

(END) Dow Jones Newswires

February 07, 2019 03:02 ET (08:02 GMT)

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