Timeyin Akerele

you will be on that tariff if you don't actively choose.

So lots of people go in the market, they look on a price comparison website and they go, oh, that's the best tariff, that's the best value tariff.

Those people are making their own choices and usually get a better price than the price cap.

But the price cap is there to protect people who don't actively engage in the market.

And at any one time, about two thirds of people will just stay with their supplier.

They're comfortable with the energy company that they've got supplying them.

and they just expect to be charged a fair price.

But before the price cap, some of those companies would take advantage of the fact that their customers weren't moving around and charge them more than we thought was justified.

And so the government introduced a price cap.

Ofgem administers that price cap.

And as I say, we set it at a level where the energy company can cover all its costs, reasonable, efficient costs of supplying those customers with electricity and gas.

And then we allow a small profit margin on top to keep the market fluid, to keep companies in the market and to give them the funds to invest in the upgrades and the customer service and the new technologies that we're hoping they're bringing forward.

I think it was that observation that politicians made that about two thirds of customers

don't actively switch or look for the best deal or change tariff on a regular basis they just think well it's a standard essential service that comes to my home i've always had this company i'm happy with the company um but those customers were quite often being charged more than we

I think is a fair price.

Let's do that.

So energy is complex.

So I'll first describe what bill we're talking about.

So I'm assuming this is a house that has both electricity and gas.

So gas probably for the boiler, maybe for cooking, etc.