The UK's Energy Price Cap Will Rise By Another £800 In October | TOTUM
Holly BarrowMay 23rd
2022

Ofgem's chief executive, Jonathan Brearley, has revealed today that the UK's energy price cap will once again rise in October to around £2,800. The current price cap - £1,971 a year - applies until September 31st; this was already a significant jump from the previous cap six months earlier, increasing by a staggering 54%.

Ofgem has been widely criticised, including most recently by money-saving guru Martin Lewis, who accused the energy regulator of '[selling] consumers down the river’.

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Ofgem recently announced that it would be reviewing the energy price cap every three months, claiming this would allow any savings to be passed on to consumers more quickly whilst protecting energy suppliers from being damaged by the cap. But Lewis, along with a number of MPs, campaigners and members of the public, has criticised Ofgem. He labelled the move a 'f**king disgrace', before going on to apologise for 'losing [his] rag'.

The founder of MoneySavingExpert.com said in a statement: "I lost it when getting a briefing about today's proposals, where it feels like at every turn, in these desperate times where lives are at risk, it has ignored all asks for consumers and instead kowtowed to the industry (I hope history proves me wrong)...

"My breaking point was when hearing how instead of listening to calls to scrap its proposed market stabilisation charge, it was making it harsher to really 'stop the harmful effects of competition’.

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And now, it seems Lewis' fears have materialised, with Brearley informing the Business, Energy and Industrial Strategy Committee today that, come October, the price cap will be "in the region of £2,800" - an £800 increase.

This means that in the space of just a year, the UK's energy price cap will have risen by an astonishing 119%.

"I'm afraid to say conditions have worsened in the global gas market, with Russia's invasion of Ukraine", Brerley said.

"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."

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This would take energy bills to the highest level as a proportion of household spending since comparable records began in the 1950s.

Speaking on the news, Cat Hobbs, director of We Own It - a public ownership campaigning organisation - said: “People are already going hungry, in October they will be shivering and wondering why we can’t just bring energy into public ownership.

"Look at countries like Norway and France - they are protecting the public instead of a handful of shareholders. France has limited its price rise to 4% while here in the UK, we’ll now be having a 119% rise since October 2021."

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