KPMG responds to Ofgem’s July Price Cap announcement

Responding to the announcement from Ofgem this morning that the Price Cap will fall below the level of the Energy Price Guarantee, reducing from £3,280 in Q2 2023, to £2,074 from July 2023, Simon Virley CB, Vice Chair and Head of Energy and Natural Resources at KPMG in the UK, said:

“A lower price cap will bring some welcome relief to households still grappling with higher food, utilities and, for many, mortgage costs. However, energy prices are still almost double that of the average dual fuel bill before the Ukraine crisis and are likely to stay around this level throughout the next winter. Households will be hoping today’s news leads to more choice in the market, as the price cap has been the default tariff for over a year now, with very little incentive for consumers to switch suppliers to get a better deal.

“Beyond this latest announcement, energy suppliers still need greater clarity about the future direction of government policy for the energy market. Serious thought needs to be given to how best deliver sustainable competition in the long-term, whilst protecting those that need it from higher prices.  If that is a move to a social tariff for energy, on what basis would the eligible group be defined, and is there an ongoing role for the price cap in this scenario?" 

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For further information please contact:

Jo Chileshe, KPMG Corporate Communications
T: +44 (0)121 232 3343
M: +44 (0)7919 211 803
E: jo.chileshe@kpmg.co.uk

About KPMG

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.