Unprecedented rises in gas prices were already occurring during 2021, even before the conflict in Ukraine began (in 2022) causing Europe-wide disruption to energy supplies.

The UK's energy price cap was increased last month, but the previous change came in August 2021 and therefore did not reflect the historic rises in wholesale prices for energy firms. This caused a multitude of energy firms to collapse within a short time period as they were forced to sell energy at a lower cost to their customers.

Ofgem said that a more frequent price cap would reflect the most up-to-date and accurate energy prices and should mean that when prices fall from the current record highs, customers would see the benefit much sooner. 

This change would also help energy suppliers to more accurately predict how much energy they need to purchase for their customers.

Jonathan Brearley, Ofgem CEO, said: “Our top priority is to protect consumers by ensuring a fair and resilient...