Ofgem chief warns energy bills will be ‘worse than last year’ for some households
Ofgem chief executive Jonathan Brearley warned some would find their energy bills are 'worse than last year'
PARLIAMENT TV
Ofgem’s chief has warned household bills will be worse this year than they were last year for some consumers, despite energy costs dropping.
The energy regulator’s chief executive, Jonathan Brearley, warned many people should expect their bills to be “very similar” to winter 2022/23.
Ofgem’s energy price cap has eased from the very high levels seen in the past year, but households shouldn’t expect to be better off this winter.
This is due to government support, such as the Energy Bill Support Scheme which provided a £400 discount on energy bills, having ended.
The Energy Bill Support Scheme offering a £400 discount on energy bills have ended
PA
Speaking to MPs on the Energy Security and Net Zero Committee, Mr Brearley said there is “some positive news” as the market is more stable.
He said: “When I look across the market this winter and I think about how does that play out for us this winter, I should start by saying we have a full focus on making sure customers are protected this winter.
“There is some positive news. The market is more stable, it is less volatile and prices are lower than this time last year.
“This time last year, we were anticipating and seeing prices at around £4,200 a year without Government support.
“And last year, Government did step in to give tens of billions of pounds of support to customers.
“But there is a reality for customers this year: That support is not available. So, for many people, their bills will be very similar this year, and possibly worse for some, than they were last year.”
From October 1, the energy price cap will be set at £1,923 a year for a dual fuel household paying by direct debit, based on the current typical domestic consumption values (TDCV) rate.
The price cap from last October was £3,549 and then £4,279 from January this year, although customers were protected by the government’s energy price guarantee at that time – meaning the cap was subsidised to the level of £2,500 a year for typical households.
LATEST DEVELOPMENTS:
From October 1, the energy price cap will be set at £1,923 a year for a dual fuel household paying by direct debit, based on the current typical domestic consumption values (TDCV) rate
PA
Due to an increase in the standing charge since last winter, households who use less electricity are likely to see their bills are higher than they were last winter.
Last winter, the median household in the UK paid an annualised energy bill of around £2,100 after taking off thousands of pounds of Government support.
It’s the rates that are capped, rather than the headline energy price cap figure, so people who use more energy will pay more than the £1,923 figure.
Do you have an energy bill question which you'd like financial experts to answer? Get in touch by emailing money@gbnews.uk.
You may like
