The average UK household's energy bills will increase by 6.4 per cent in April after the energy regulator announced the third consecutive hike in the cap on gas and electricity costs.
The cap limits the maximum amount energy suppliers can charge per unit of gas or electricity for customers on default tariffs.
A key part of its role is setting a price cap — a limit on what energy firms can charge customers on default or standard variable tariffs.
The cap is a regulatory mechanism to prevent energy suppliers from overcharging customers on default or standard variable tariffs.
The cap limits the amount suppliers can charge per energy unit (measured in pence per kilowatt-hour, or p/kWh).
