depends...

There's bound to be some structural costs to recover that will get baked in, so I wouldn't necessarily assume the price cap will come down any time soon (subject to political interference)

But if you mean will headline in-contract prices fall, and possibly fall below the price cap again - then yes at some point they will. Maybe relatively quickly if the Ukraine situation gets resolved and Russia returns to the fold.

Once you've incurred your loss it's banked. Each new selling season is a new selling season: If you price at costs + overheads + margin + recovery of historic losses then you will get undercut by someone just pricing on costs + overheads + margin.

Key to it all will be what Ofgem does about new market entrants (or re-entrants). Most of the folk that ran these defunct energy companies are still out there, will they be able to jump back in with the same old model or will Ofgem make it harder?

More competition = cheaper consumer prices.

Whether we're talking 12, 24, or 36 months - who knows.

Posted By: CWC, May 17, 10:33:03