By Adria Calatayud

The U.K.'s Office of Gas and Electricity Markets, or Ofgem, said Tuesday that a new energy-price cap will come into effect from Jan. 1, 2019.

The regulator said the measure will allow 11 million customers to save around 76 pounds ($98.9 million) a year on average. Energy suppliers will have to cut the price of their default tariffs to GBP1,137 or below. It is estimated that this will remove around GBP1 billion from consumers' bills, Ofgem said.

The price-cap level will be updated in April and October every year, Ofgem said.

Write to Adria Calatayud at adria.calatayudvaello@dowjones.com

(END) Dow Jones Newswires

November 06, 2018 03:09 ET (08:09 GMT)

Copyright (c) 2018 Dow Jones & Company, Inc.
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