November 6, 2018 / 7:40 AM / 10 months ago

UPDATE 1-British energy price cap to start from Jan. 1 -regulator

(Updates throughout)

By Susanna Twidale

LONDON, Nov 6 (Reuters) - A British price cap on the most widely used domestic energy tariffs will come into force on Jan. 1, 2019, energy regulator Ofgem said on Tuesday.

The regulator was tasked by parliament with setting a cap after a committee of lawmakers called Britain’s energy market “broken”. Prime Minister Theresa May said the energy tariffs were a “rip-off”.

The cap, set at 1,137 pounds ($1,487) per year for a dual fuel bill, is in line with an indicative level announced in September.

It will give 11 million customers cheaper prices and save British households a total of around 1 billion pounds a year, Ofgem said.

A typical customer on the most expensive tariff could save up to 120 pounds a year, Ofgem said.

The level of the cap will be updated in April and October each year to reflect the latest costs for suppliers such as wholesale energy prices and policy costs.

Britain’s big six energy suppliers are Centrica’s British Gas, SSE, Iberdrola’s Scottish Power, Innogy’s npower, E.ON and EDF Energy .

$1 = 0.7658 pounds Reporting by Susanna Twidale, editing by Louise Heavens and Jason Neely

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