• Home
  • News
  • Entertainment
  • LAD Originals

U OK M8?
Free To Be
Extinct
Citizen Reef

To make sure you never miss out on your favourite NEW stories, we're happy to send you some reminders

Click 'OK' then 'Allow' to enable notifications

Not now
OK
Advert

Energy Price Cap Set To Rise By Almost £1,000 In October

Published 
| Last updated 

Energy Price Cap Set To Rise By Almost £1,000 In October

Ofgem's chief executive Jonathan Brearley has announced the UK's energy price cap is expected to increase to £2,800 later this year in what he describes as 'genuinely a once-in-a-generation event not seen since the oil crisis of the 1970s'.

The news comes as the cost of living crisis deepens, with soaring inflation rates and energy bills pushing many low-income households even further into poverty.

Currently the energy cap sits at £1,971, which was already a staggering £693 rise from the previous cap. Credit: Alamy
Currently the energy cap sits at £1,971, which was already a staggering £693 rise from the previous cap. Credit: Alamy

Currently the energy cap – aka the maximum price per unit suppliers can charge you – sits at £1,971, which was already a staggering £693 rise from the previous cap, and saw households pay an extra £700 a year on average.

Advert

Now, the crisis looks set to intensify as Brearley told the Business, Energy and Industrial Strategy Committee the public could be forking out more once again come October.

He said: “I am afraid to say conditions have worsened in the global gas market since Russia’s invasion of Ukraine. Gas prices are higher and highly volatile. At times they have now reached over 10 times their normal level.

“I know this is a very distressing time for customers but I do need to be clear with this committee, with customers and with the government about the likely price implications for October.

Advert

“Therefore later today I will be writing to the Chancellor to give him our latest estimates of the price cap uplift.

“This is uncertain, we are only part way through the price cap window, but we are expecting a price cap in October in the region of £2,800.”

He added: "Our future scenarios when we look beyond that, we're really managing between two extreme versions of events - one where the price falls back down to where it was before - for example if we did see peace in Ukraine - and one where prices could go even further if we were to see, for example, a disruptive interruption of gas from Russia."

The UK's energy price cap could increase to £2,800 later this year. Credit: Alamy
The UK's energy price cap could increase to £2,800 later this year. Credit: Alamy
Advert

Following the announcement, Downing Street said it acknowledged the surge in energy costs were a 'significant challenge', with a spokesperson confirming the government is 'actively looking at what more could be done in this space'.

"Some of the support is designed to come in in October, £200 will be discounted from energy bills, the warm home discount will increase to £150 and be expanded to cover three million people, cold weather payments and winter fuel payments will be available again," the spokesperson said.

The announcement comes just days after the energy regulator said the price cap could start to be reviewed every three months instead of every six.

Featured Image Credit: Alamy

Topics: UK News

Chloe Rowland
More like this
Advert
Advert
Advert

Chosen for YouChosen for You

News

R. Kelly Has Been Placed On Suicide Watch After Being Sentenced To 30 Years In Prison

2 hours ago

Most Read StoriesMost Read

News

R. Kelly Has Been Placed On Suicide Watch After Being Sentenced To 30 Years In Prison

2 hours ago