KPMG responds to Ofgem April Price Cap announcement

Responding to the announcement from Ofgem this morning that the Price Cap will reduce from £4,279 in Q1 2023, to £3,280 from April 2023, Simon Virley CB, Vice Chair and Head of Energy and Natural Resources at KPMG, said:

“While today’s announcement reflects falling wholesale prices, this will be of little immediate benefit to households already struggling with bills.  The proposed level for the energy price cap from April remains higher than the Government’s Energy Price Guarantee (EPG), which currently stands at £2500pa and is due to rise to £3000pa for an average dual fuel bill from April.

“Although milder weather and lower demand for gas over the winter have helped keep the estimated cost of energy support down for the Government, across the industry suppliers are seeing increasing levels of debt as more consumers struggle with their bills. The Government needs to be thinking about what follows the current universal support and find a way to target support for energy bills on those who need it most. Social tariffs are a viable way of doing this and are already used in other sectors like broadband and water. But if the systems to manage such a programme are to be up and running in time for April 2024, when the current Energy Price Guarantee is due to end, there needs to be a real urgency to move forward with some of the key policy decisions to make this happen on time.”

-ENDS

For further information please contact:

KPMG Media Relations

Claire Barratt

Mobile: +44 (0)7923 439264

claire.barratt@kpmg.co.uk

About KPMG UK

KPMG LLP, a UK limited liability partnership, operates from 20 offices across the UK with approximately 17,000 partners and staff. The UK firm recorded a revenue of £2.72 billion in the year ended 30 September 2022.  

KPMG is a global organization of independent professional services firms providing Audit, Legal, Tax and Advisory services. It operates in 143 countries and territories with more than 265,000 partners and employees working in member firms around the world. Each KPMG firm is a legally distinct and separate entity and describes itself as such. KPMG International Limited is a private English company limited by guarantee. KPMG International Limited and its related entities do not provide services to clients.