Ofgem's energy price cap is a blunt stick but it will protect vulnerable consumers

Analysis: The cap is due to be lifted in 2023, but will the regulator’s efforts to fix the market in the meantime bear fruit, asks James Moore?

Energy regulator Ofgem will introduce its much vaunted price capping regime on 1 January (PA)

Trumpeting its price cap, Ofgem declared proudly that it would “give 11 million a fairer deal from 1 January”. And indeed, it will come into force in the new year, now that an industry consultation has closed.

For the record, it’s a tad higher than had previously been proposed. Standard variable energy tariffs (SVTs) have risen by even more, however, so the savings when it comes into force will be greater than had been expected.

SVTs might have increased because of rising wholesale energy prices. But it might also be because the big suppliers have decided to have one last party before the hammer comes down.