Ofgem Announcement October £2800 price cap, designed to make people fix?

Mstty

Part of Ofgems announcement today said suppliers we not making any profits and there was risk of further suppliers going under.

I do wonder if todays headline grabbing "current forecast" of £2800 price cap in October was just a way to get everyone locked into a fix deal so energy companies make a profit over summer to stave off going bust.

Maybe I am just being cynical and it's just a way to help people.out

Thrugelmir

If any business fails to be run profitably then it will cease to exist. That's the way of the world. Alternatively companies will simply pull out of certain markets. Reducing consumer choice. Profit does many things. Not least providing the cash for the business to reinvest back into better systems, more staff etc. Days of magic money trees are over. 

bristolleedsfan

Designed to encourage cost of living help to be announced by Government sooner than later instead of waiting until July just before Summer recess.
https://www.ofgem.gov.uk/publications/letter-jonathan-brearley-chancellor-and-secretary-state-business-energy-and-industrial-strategy-default-tariff-cap