The energy regulator Ofgem has announced that the energy price cap would rise from £1,720 to £1,755.
The two per cent increase will come into force at the start of October and will be in place for three months.
The current price cap of £1,720 per year, in place until 30 September, had represented a seven per cent decrease from the previous quarter.
Minister for Energy Michael Shanks acknowledged families’ concerns: “We know that any price rise is a concern for families. Wholesale gas prices remain 75 per cent above their levels before Russia invaded Ukraine. That is the fossil fuel penalty being paid by families, businesses, and our economy.
Energy consultants Cornwall Insight said that while this increase is not good news for households, there is some hope on the horizon with January forecasts currently showing a fall to £1,712 a year for a typical consumer.
“However, while the wholesale element of the bill is currently predicted to reduce in the new year, the January cap is expected to introduce new non-wholesale elements to bills. Chief among these is the Regulated Asset Base (RAB) – to support investment in new nuclear power stations – expected to add just under £10 per year to a typical bill.”
Independent Age Chief Executive Joanna Elson CBE said:
“Older people on low incomes across the country have had their budgets stretched to breaking point, and today’s energy price cap announcement will bring further anxiety, as a typical household bill will rise yet again to £1,755. Winter is around the corner and even small increases will be too much to bear for many of the people in later life we speak to who are already making drastic cutbacks. Last winter, too many older people in financial hardship were left behind choosing between heating and eating, and avoiding meeting loved ones because they were embarrassed to invite people to their cold homes.
“Currently there are over one million older households living in fuel poverty. Immediate action is needed to bring this number down. The UK Government needs to increase the Warm Home Discount from £150 to £400 to match the sharp increase in energy bills alongside creating an energy social tariff that protects customers of all ages on low incomes. We cannot have another winter where anyone experiencing financial hardship is left in the cold.”
