Energy Price Cap Set To Rise By Nearly £1,000 In October
24 May 2022
Ofgem boss Jonathan Brearley announced today that the energy price cap – the limit on how much providers can raise prices – is expected to increase to £2,800 a year.
The continued volatility in gas prices has put brits in a “once in a generation event not seen since the oil crisis in the 1970s”.
The increase in the cap would push up the average annual bill by more than £800, after the regulator increased it by £693 in April to £1,971.
The compounding increase will now mean millions of low-income families will be faced with the dire choice of feeding themselves or keeping their homes warm.
Business and energy secretary, Kwasi Kwarteng said help is on the way. “What we see now is not the full picture. Both the prime minister and the chancellor have said there will be further announcements in due course.”
He added: “These interventions may not be able to solve all the problems consumers face but they will go some way to dealing with this cost of living issue.”
Shadow chancellor Rachel Reeves wrote on Twitter: “How many more alarm bells do the Conservatives need before they act? We need an emergency budget now, with a windfall tax on oil and gas producer profits to lower bills.”