Energy prices for millions of households are expected to be announced by the regulator Ofgem, with projections indicating a slight increase for the autumn and winter months. Analysts are forecasting a rise of approximately 1% in gas and electricity prices between October and December, contradicting earlier predictions of a decrease.
Ofgem’s price cap, which determines the maximum charge for each unit of gas and electricity for about 21 million households across England, Scotland, and Wales, is set to be revised in accordance with wholesale market costs every three months. The new prices will take effect at the start of October. Experts at energy consultancy Cornwall Insight predict that the average energy bill will increase by £17, bringing it to £1,737 annually for households consuming a typical amount of energy.
Support measures have been introduced by the government, including an extension of the £150 Warm Home Discount to households on means-tested benefits. This adjustment allows more individuals to qualify for assistance, with the previous property-size restriction being lifted. Funding for this support will be sourced from all billpayers.
Amidst rising costs, some households are reportedly facing difficulties in managing their energy bills and repaying any accumulated energy debt. Campaigners highlight that many are still paying significantly more than they did prior to recent price hikes. The consumer group Which? advises on the potential benefits of exploring fixed-price deals while cautioning about high exit fees that might negate any savings.
A spokesperson from the Department for Energy Security and Net Zero noted that the government’s focus is on transitioning to clean energy solutions to stabilize prices in the long term. In the meantime, efforts to enhance support for families during the winter season are underway, alongside measures for customer protections.
Source: https://www.bbc.com/news/articles/c78zgz7j576o?at_medium=RSS&at_campaign=rss