The first three months of Ofgem’s default tariff cap are nearly at an end. Introduced by the regulator with a claimed typical saving of £76/ year from 1 January 2019, the cap is to increase effective 1 April 2019 by £117/ year for its six-month summer period.
The final weeks of 2018 saw many suppliers cut their standard variable tariffs (SVT) to make sure they were compliant with the new cap’s starting level of £1,137/ year. Likewise, recent weeks have seen some suppliers increase their SVTs, anticipating the new level of the cap and often citing Ofgem’s calculations when explaining their moves.