By Jaime Llinares Taboada
U.K. regulator Ofgem said Monday that it intends to review the price cap on energy prices on a quarterly basis rather than every six months.
The energy watchdog said it will publish a minded-to consultation to change the price cap methodology. The changes would be implemented from October.
Ofgem said a more frequent price cap would better reflect wholesale energy prices and mean that customers would see benefits much sooner when prices fall from current record highs.
In addition, the change is also meant to help energy retailers predict how much energy they need to purchase, reducing the risk of bankruptcies.
"The last year has shown that we need to make changes to the price cap so that suppliers are better able to manage risks in these unprecedented market conditions," Ofgem Chief Executive Jonathan Brearley said.
Write to Jaime Llinares Taboada at email@example.com; @JaimeLlinaresT
(END) Dow Jones Newswires