I also don't understand the cap -- but a bit of info.
My electric supplier Eon inform me that Ofgem (who we thought were on our side) are actually a govt department who work with and alongside the companies to set the price on ''a business basis''. To me , setting prices from the business point of view can only mean maximising profits. This came from me asking them to justify a 125% increase on the standing charge. Their justification was to just list what the charge is spent on. I then pointed out that if I continue to buy the same amount of the same electricity ,whatever the product price, i will not be using , asking for or be given 125% more pipes and cables, nor will their workers who work on the infrastructure be getting a 125% pay rise. I doubt wether their investment in green projects will increase, and if they were going to increase contributions to govt initiatives to provide heat for the poor, then I'm sure we would have heard the govt shouting it from the rooftops. All this extra is going straight into their pocket. Ofgem have given their blessing to what is pure profiteering.-- they assume that when people look at the figure at the bottom of the bill, they assume it's all down to market price.
Their CEO, (whos words were virtually copied this week by the EDF Ceo, and who both reckon they are experts in the domestic finances of every Uk household, despite both being non British), have said they want the govt to give more money to customers to help them . (give OUR money from OUR public purse of course, which we will have to one day repay) . An attempt to get the govt to ensure bills are paid, their income stream to profit is not interrupted so roll on their big bonus rise. If they wanted to help, then cancel the 125% standing charge rise.