Ofgem raises Energy Price Cap – but consumers protected for now

The energy price cap will rise to a record £4,279 in January 2023 – but consumers won’t feel the effects because of the government’s Energy Price Guarantee (EPG).Energy regulator Ofgem on Thursday announced the update, which will remain until the end of March 2023. The EPG is in effect until April and will ensure that average households pay £2,500.Energy is charged per unit, so those who use more can spend more.Experts at energy consultancy Auxilione estimate the new cap will cost the Government around £15.1 billion to subsidise household bills between January and March.The price cap, which has been in place since 2019, is based on wholesale rates and dictates what energy firms can charge.Read MoreThe next quarterly price cap update will be on 27 February 2023.