OFGEM has today announced a hike in the energy price cap, massively increasing the amount you could be charged for your bills.
Brit families have today been told that the cap on bills has been lifted to £3,549 a year.
Ministers are now under pressure to offer radical support to struggling families, similar to schemes used during the pandemic.
Proposals are being lined up to allow either Liz Truss or Rishi Sunak to make quick decisions to help deal with the crisis when they become PM.
The rise will hit 24million households, with four million of those on prepayment meters.
Over nine million more households have moved on to the standard variable tariff since October last year after more than thirty energy suppliers went bust.
Those who pay their energy bills by direct debit will see bills increase from £1,971 to £3,549.
Those on credit meters who pay by other means will see their bills hiked from £2,100 to £3,764.
Read our live blog below for live updates….
-
Statement from Ofgem on today’s price rise
Jonathan Brearley, CEO of Ofgem, said: “We know the massive impact this price cap increase will have on households across Britain and the difficult decisions consumers will now have to make. I talk to customers regularly and I know that today’s news will be very worrying for many.
“The price of energy has reached record levels driven by an aggressive economic act by the Russian state. They have slowly and deliberately turned off the gas supplies to Europe causing harm to our households, businesses and wider economy. Ofgem has no choice but to reflect these cost increases in the price cap.
“The Government support package is delivering help right now, but it’s clear the new Prime Minister will need to act further to tackle the impact of the price rises that are coming in October and next year. We are working with ministers, consumer groups and industry on a set of options for the incoming Prime Minister that will require urgent action. The response will need to match the scale of the crisis we have before us. With the right support in place and with regulator, government, industry and consumers working together, we can find a way through this.”
-
Around 24 million households to be hit by today’s hike
The rise will hit 24million households, with four million of those on prepayment meters.
Over nine million more households have moved on to the standard variable tariff since October last year after more than thirty energy suppliers went bust.
-
Energy bills to rise by 80% for Brits
The cost of energy for British consumers will rise by 80% from October, regulator Ofgem said on Friday.
Today’s figure takes the average annual household bills to £3,549.
