Households face energy bill rise to £2,800 a year in October, Ofgem boss warns

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HOUSEHOLDS Your energy bill rocketed to an eye-watering £2,800. could see till On average from £1,971 a year.

Offgame boss Jonathan Brearley has told the Business, Energy and Industrial Strategy Committee he is expecting energy price cap In October “in the region of £2,800”.

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Families face energy bills that rise to £2,800 a year in Octobercredit: getty

previous estimates predicted Price range £2,750 . will increase toAccording to Cornwall Insight.

Price range increased from £1,971 to £1,277 on 1 April – £700. Add A year to bill 22 million customers.

But the Offgame boss told the committee today: “I am afraid to say that conditions in the global gas market have worsened since the Russian invasion. Ukraine, Gas prices are high and highly volatile.

“At times they have now reached 10 times their normal level.

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

“So later today I will write to the Chancellor to give my latest estimates price range uplift

“It’s uncertain, we’re only part way through the price cap window, but we’re expecting a price cap” In October In the region of £2,800.”

This means families could see their bills rise by £830 when the new price cap goes into effect from October.

Energy pricing limits are in place to limit how much customers can charge for the default double fuel fee to save them from skyrocketing bills.

But it is mainly based on the price of bulk energy and supplier cost.

They have increased in recent months, meaning homes are facing hefty gas and electricity bills.

Emerging bulk gas prices Hit by the pandemic, supply crunch and ongoing conflict abroad have been blamed for raising the cap.

in previous years families were able to save money By shopping around for energy deals, but many companies have since closed down, people are hardly left with a choice on tariffs.

Has more than 30 firms folded in the past year And that’s thanks to the pressures to keep up with rising costs.

It also means that many homes have been moved to new suppliers who put them directly on the cap, meaning they had to pay more for their bills.

And the war in Ukraine has caused prices to skyrocket here as well, as the British are already grappling with the cost of living crisis.

Ofgame’s chief executive said energy prices could rise further if Russia cuts gas supplies amid the ongoing conflict.

Mr Brearley said: “The price changes we’ve seen in the gas market are truly a once-in-a-generation phenomenon that hasn’t been seen since the oil crisis of the 1970s.

“There would have been a supplier failure under any conceivable circumstances.

“While it is clear to me and to the current Offgame Board that, given all of our institution’s history, the sooner that financial controls were put in place, we would probably see fewer suppliers exit the market, and then For that, I want to apologize on behalf of Offgame and its board.”

Exactly what you pay for energy may vary.

This limit only applies to your tariff – so if you use more energy, your bill could be higher.

If you have more family members in your household, or more device plug in Higher than usual, for example, you may find that your costs exceed the price range.

Meanwhile, the energy regulator has said that the price cap may soon be reviewed more often Too.

Instead of every six months, as is the current practice, we can get new figures every three.

If, then, the price range is reviewed four times a year instead of twice, it could mean that households see less dramatic changes to their bills each time.

Experts also expect prices not to rise for much longer, and expect a fall in the price range when it is reviewed next April.

What if I’m already struggling with my energy bills?

Families are already struggling to cover the cost of their energy bills, so moving forward will only mean they need more support.

should be your first step Contact your energy supplier.

They may be able to change your payment plan or check whether you are eligible for their hardship fund.

For example, British Gas And Octopus The two have set up the fund to help customers struggling with their bills.

You should also check that you are getting all the benefits that you are entitled to.

use one online profit calculator To make sure you are not losing any extra cash.

Similarly, you can search for grants Which can help you pay gas and electricity bills.

The government is ready to give to every household £200 off Their energy bills have been closed around the same time that the new price range is also due.

The energy rebate was announced as part of a broader package of support, which also meant that families got their money. Council tax very.

But with the energy rebate, from next April and for the five years after that, you’ll have your bill. Automatically increased by £40 per year To pay it back gradually.

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The government recently announced Expansion of Domestic Assistance Fund To help families with rising cost of living even in the first year.

contact your local council To find out what support is available in your area.

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