Possible U-turn on energy Price Cap

The Times are reporting that Jeremy Hunt is “poised” to extend the government’s £2,500 energy price guarantee for a further three months from April – June rather than lift it to £3,000 as planned.

The move, which is expected by energy companies, is an effort to limit increases in people’s bills until the summer, and would protect households from a 20% hike in bills.

A three-month extension would take us to July, when analysts expect Ofgem’s price cap to drop to around £2,100 per year (for a typical household), well below the government’s current guarantee.