KPMG responds to Ofgem’s consultation on the energy price cap

Responding to the announcement from Ofgem this morning that it is launching a consultation on the future of the price cap, Simon Virley CB, Vice Chair and Head of Energy and Natural Resources at KPMG UK, said:

“The price cap was introduced five years ago as a temporary measure to protect ‘sticky' customers, while the energy market was reformed. In the intervening years the price cap has worked in saving customers money, especially in recent years where we have seen unprecedented price rises. However, our recent research has shown that this has come at a price, with effective competition and innovation in the market suffering and switching levels falling off a cliff.

“As we look to what a future retail energy market looks like – it will be key to balance proportionate consumer protection with incentives for investment and innovation in a smarter energy system that benefits all consumers.”

-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 18,000 partners and staff. The UK firm recorded a revenue of £2.96 billion in the year ended 30 September 2023.  

KPMG is a global organisation of independent professional services firms providing Audit, Legal, Tax and Advisory services. It operates in 143 countries and territories with more than 273,000 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.