Ofgem energy price cap scrap would save households hundreds, analysis finds
Experts say that households can save £ 200 per year.
A flexible system Energy Pricing In a new report from the Solution Foundation, it would reduce the electricity price by 4P/kWh in the next 15 years.
An important measure under this system will include ‘location pricing’ in which households pay energy according to the costs in their fields. In the report, this can reduce system costs 3.7 billion per year, in the report, equivalent to £ 40 per household.
The highest savings can be made to offer more tariffs that can pay cheaper energy rates depending on the time of the day when households are used. According to the report, this will save an average of £ 160 per household until 2040.
Researchers, this measure will benefit especially to the owners of electric vehicle (home), compared to the price limit will save an average of £ 120 per year. This is because most hosts charge their vehicles on a night when electricity will be cheaper.
Houses, in 2024, 19 percent of all automobile sales by gaining popularity in the UK. The sale of new gasoline and diesel cars in 2030 is expected to increase rapidly in the coming years.
This demand is so great that the houses will be the main drivers behind an increase in a 40 percent increase in housing electricity use by 2035, as well as electric heating.
However, this flexible electrical model may come with higher price risks for household peoples, as they will be exposed to more volatility in the electricity market.
In February, a report for octopus energy by FTI investigated how local or regional pricing could affect housewife energy costs throughout the country.
His analyzes found that the average wholesale prices in the north were lower than the south, and that those in London were faced with approximately seven times higher bills than in Scotland if they are directly matching the region -based wholesale costs.
Solution Foundation Economist Zachary Leather said: “Britain’s net zero transition – in terms of both energy production and energy consumption – there must be a life -earning cost for consumers, but it will put more pressure on the electricity network and create more price volatility.
“Passing to flexible pricing for consumers can handle these risks and reduce bills for everyone in this process.”
Ofgem was contacted for a comment.
