MPs at the Business, Energy and Industrial Strategy Committee (BEIS) have been told shocking news today to expect an increase to the energy price cap in October to be “in the region of £2,800.”
Jonathan Brearley, the chief executive of industry regulator Ofgem told the committee that “the price changes are genuinely a once in a generation event not seen since the 1970s.”
Millions of families are already struggling to live, eat, pay bills and many are forced to chose between eating or heating as bills have already risen to around £693 for their annual energy bill.
Brearley told the BEIS Committee, “I am afraid to say conditions have worsened in the global gas market since Russia’s invasion of Ukraine. 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.
“Therefore later today I will be writing to the Chancellor to give him our latest estimates of the price cap uplift.
“This is uncertain, we are only part way through the price cap window, but we are expecting a price cap in October in the region of £2,800.”