It was blamed for the collapse of some suppliers, who were forced to sell energy at huge losses, and for failing to shield low-income households from eventually big price rises that ensued when the cap was recalculated by Ofgem.
That prompted MPs on the Business Select Committee to call on ministers to consider possible alternatives to the price cap in July.
For example, they said a social tariff or a limit on how far apart a supplier’s least and most expensive tariffs can be could also help to protect consumers.
In response to their recommendation, the Government said it would “consider how price protection needs to evolve as the energy system changes”.
It added: “Government will set out next steps on the future of the retail market in due course.”
Ofgem also told MPs that the end of the energy price guarantee in October 2024 would present “an opportunity for a wider review of all elements of the energy price cap” and the “future of price protection for consumers”.
A spokesman added on Friday: “As per current practice, the Energy Prices Bill obliges Ofgem to review our price protections at intervals which we consider most appropriate.
“Protecting consumers and ensuring stability in the market are priorities for Ofgem, so of course we will be working with the Government to determine what protections will be required after the end of the Energy Price Guarantee.”
A future decision on whether to continue the price cap will lie with the Government.
