How new Ofgem pricing could make boiling your kettle in the evening more expensive… but could save you money for doing the laundry at night

Boiling a kettle during the energy peak in the evening could become more expensive under a new dynamic pricing regime.

Watchdog Ofgem will consult on a new price cap system that will allow different charges depending on the time of day.

Families could pay more to use the kettle, washing machine and dishwasher during the evening peak, to convince them to switch to other times of the day.

The system would also encourage people with electric cars to charge them overnight.

On the other hand, households could be rewarded with lower rates for switching their consumption to low hours.

Doing laundry all night could become a standard practice, although this goes against safety advice related to appliance fires.

The changes are part of the green transition in energy consumption, with a switch from gas-fired power stations to renewable energy sources.

The system would include warnings telling people to turn on home appliances when there is an abundance of cheap wind and solar energy. Ofgem said this would reward consumers for shifting their energy consumption, reducing costs for everyone.

Smart meters will take center stage – they allow energy companies to change how much homeowners have to pay at the touch of a button.

However, their installation program is over budget and behind schedule.

Ofgem said the existing price cap, together with a temporary ban on energy companies offering cheap deals to attract new customers, had helped protect the public.

Tim Jarvis of Ofgem said: ‘The energy market is changing as we move towards net zero and we recognize that the systems we have in place may need to change too.’

However, Richard Neudegg of Uswitch.com said: ‘We have yet to see a full return to competition in the market – and the price ceiling must bear some of the blame.’