Ofgem energy price cap to be announced tomorrow with rise to 'around £1,900' expected

The energy regulator is responsible for the energy price cap which limits how much providers can charge customers on their energy bills.

Ofgem said an announcement will be made at 11am on Thursday morning with the decision affecting 22 million households across the UK.

Millions currently have their energy bills capped at £1,277 for an average household. Experts believe that this could rise to around £1,900 from April 1 when the new price cap comes into force.

Calls have intensified in recent weeks for the Government to step in to help struggling households.

How does the Ofgem energy price cap work?

Ofgem took to social media to describe how it calculates the energy price cap.

Watch the video here:

🙋A question we often hear is “what is the price cap?”

While we don't increase or decrease the price of energy, we calculate the level of the government's #EnergyPriceCap that applies to default energy tariffs.

This may affect you. See how it works📺 https://t.co/7SyVaj2ogq pic.twitter.com/4wqpvMDGpl

— Ofgem (@ofgem) January 25, 2022

Government plan for £200 rebate to help with energy bills

A plan that could give each household in Britain a £200 rebate off their energy bill could be announced as early as Thursday, it is reported.

The Times said that ministers are poised to announce a multibillion-pound loan programme to energy suppliers across the country.

The suppliers would be asked to pass on the money to households across Britain, by taking money off their energy bills.

It will help offset at least some of the massive spike in energy costs which are expected to hit household billpayers hard in April.