SSEZY SSE PLC (PK)

By Adam Clark

The U.K.'s energy regulator, Ofgem, said Thursday that it has set the level of its proposed price cap, which it expects to save consumers 1.0 billion pounds ($1.29 billion).

Ofgem said the cap for energy suppliers is proposed to be GBP1,136 a year for the typical gas-and-electricity customer. The regulator said this will save the typical consumer on a default energy deal around GBP75 a year, and it expects it to affect 11 million households.

"Ofgem has made full use of the powers parliament has given us to propose a tough price cap which will give a fairer deal to consumers on poor value default tariffs," Ofgem Chief Executive Dermot Nolan said.

The regulator said it intends to put the cap in place by the end of 2018. It is designed to be a temporary measure, until 2023 at the latest. Ofgem said it will update the level of the cap in April and October each year.

The energy price cap was approved by the U.K. parliament in July, amid criticism of expensive deals being charged by the U.K.'s "Big Six" energy suppliers--Centrica PLC's (CNA.LN) British Gas, SSE PLC (SSE.LN), Electricite de France SA (EDF.FR), E.ON SE (EOAN.XE), Innogy SE's(IGY.XE) Npower, and Iberdrola SA's (IBE.MC) Scottish Power.

Write to Adam Clark at adam.clark@dowjones.com; @AdamDowJones

(END) Dow Jones Newswires

September 06, 2018 02:36 ET (06:36 GMT)

Copyright (c) 2018 Dow Jones & Company, Inc.