Quarterly review could mean price rises more frequent
Russian war has hit household costs in Britain like elsewhere
Regulator to publish new price cap level later this month

LONDON, Aug 4 Reuters British energy market regulator Ofgem will review a price cap on domestic energy prices quarterly rather than twice a year, which will increase consumer bills more frequently if wholesale prices continue to rise.

British wholesale gas prices hit a record high after Russia39;s Feb. 24 invasion of Ukraine and have remained elevated despite falling back from their peak.

Britain receives about 4 of its gas from Russia, but lower overall Russian supply to Europe means competition is intense, pushing prices higher.

Ofgem said in a fastmoving energy market, six months was too long for a review.

Today39;s change will go some way to provide the stability needed in the energy market, reducing the risk of further largescale supplier failures which cause huge disruption and push up costs for consumers, Ofgem said.

The cap, in place since January 2019, sets a maximum charge per unit of energy and limits suppliers39; profits to 1.9.

TOUGH WINTER LOOMS

Ofgem said a sixmonth review delays the inevitable and means bigger changes twice a year instead of smaller ones four times a year. If wholesale prices fall then consumers would overpay for months, but if they rise suppliers sell gas at a loss for months.

Around 30 mainly small and mediumsize suppliers have failed since last year….