Home Business News Energy price cap will now rise to more than 80% from October forcing people ‘to choose between heating or eating’

Energy price cap will now rise to more than 80% from October forcing people ‘to choose between heating or eating’

by LLB Finance Reporter
26th Aug 22 9:01 am

Ofgem has announced on Friday that there will now be an 80.06% rise in the energy price cap from 1 October which will see households annual bill rise to £3,549.

Ofgem’s chief executive Jonathan Brearley is urging the incoming Prime Minister and new Cabinet “to provide an additional and urgent response to continued surging energy prices,” as there will be hardships this winter.

Brearley 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.”

Adam Scorer, chief executive of fuel poverty charity National Energy Action, said, “The scale of harm caused by these price rises needs to sink in.

“A warm home this winter will be pipedream for millions as they are priced out of a decent and healthy quality of life.

“Households need money in their pockets to weather this storm or we are going to see millions in dangerously cold homes, suffering in misery with unimaginable debt and ill health.

“Action is needed now to prevent the bleakest of winters.”

The Mayor of London, Sadiq Khan, said,“Ofgem’s announcement that the energy price cap will rise to £3,549 in October confirms what many of us have long feared.

“Despite repeated warnings, the Government has consistently failed to intervene and Ministers must act now to prevent this cost of living crisis becoming a national disaster.

“Without Government support, some Londoners will not only be forced to choose between heating or eating but could struggle to do either.

“The Government must immediately freeze bills and introduce a Lifeline Tariff to ensure the most vulnerable people in our city receive a basic amount of free energy every day.

“Through transformative initiatives like my Warmer Homes scheme I’m committed to doing all I can to support Londoners through this deepening crisis but, with energy prices soaring and more families struggling to make ends meet, this Government needs to step up and take urgent action now.”

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