Energy price cap set to rise to £2,800 in October

    Simpson Wood
    13th June 2022
    Home » Blog Posts » Energy price cap set to rise to £2,800 in October

    The energy price cap is now expected to rise to around £2,800 in October, according to the UK’s energy regulator.

    Jonathan Brearley, Chief Executive of Ofgem, warned MPs on the Commons business committee about the increase. Mr Brearley told the committee that the price cap, which is currently £1,971, will increase due to continued volatility in the gas market.

    He said the price rises were a once in a generation event not seen since the oil crisis in the 1970s. The Ofgem Chief Executive also warned that the number of people in fuel poverty could double.

    The energy price cap is the maximum price per unit that suppliers can charge customers. It rose in April, meaning that homes using a typical amount of gas and electricity are now paying an extra £700 per year on average.

    Mr Brearley said:

    ‘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 ten 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.’

    Internet links: BBC News website

    Need Some Advice?

    Looking for some help or a little advice?

    Call today on 01484 534431 or fill in our enquiry form below, and we’ll call you back.

    Clarity on new border checks is vital, says BCC

    The government must clarify plans around new customs processes as firms remain in the dark about crucial aspects of their operation, says the British Chambers of Commerce (BCC). The first…
    From below of delighted aged male entrepreneur in classy outfit standing on street and speaking on cellphone while laughing and looking away

    Over 50s bucking decline in freelance numbers

    Tens of thousands more over 50s are now running their own businesses despite an overall decline in self-employment since 2020, according to the Association of Independent Professionals and the Self-Employed…

    HMRC sends warning to cryptoasset users

    As the use of cryptoassets continues to grow HMRC is warning people to check if they need to complete a self assessment tax return for the 2022/23 tax year to avoid…

    Raise VAT threshold to £100,000, says FSB

    The government should raise the turnover threshold for VAT from £85,000 to £100,000, according to the Federation of Small Businesses (FSB). The business group said that this would give firms…