The regulator said the change would provide more stability in the energy markets and reduce the risk of further large-scale supplier failures, the likes of which cost energy customers roughly £164 each last year.

Although Britain only imports a small amount of Russian gas, Russia’s actions have created extreme volatility in the global energy market leading to unprecedented highs in the cost of oil and gas and therefore electricity.

The price cap, as set out in law in 2018, reflects what it costs to supply energy to our homes by setting a maximum suppliers can charge per unit of energy, and caps the level of profits an energy supplier can make to 1.9 per cent. As a result of the market conditions, the price cap will have to increase to reflect increased costs, Ofgem said ahead of plans to publish the next price cap level at the end of August.  

It added that a quarterly price cap will help consumers to enjoy the benefits of falls in the wholesale price...

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