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Ofgem chief tells Brits to brace for yet another hike in energy bills amid £3,000-a-year war

It comes as a report today warns that Britain is heading into recession and 1.5 million British households will struggle to pay food and energy bills over the next 12 months

Many households fear a huge increase in their energy bills this winter
Many households fear a huge increase in their energy bills this winter

Ofgem’s boss said households should expect energy prices to rise further this year.

Speaking in Glasgow, regulator Jonathan Brearley said: “Gas markets have been in a fevered state since the Russian invasion.

“Prices have fluctuated from almost 16 times last winter’s average price at its peak to about 4 times what we would normally see.

“The market remains very volatile and as such we expect further price increases later this year.”

Analysts at Cornwall Insight had previously predicted that a typical household’s annual energy bill will increase by £600 from October.

That would bring a typical household’s gas and electricity bills to £2,595.

Mr Brearley continued: “Many of you in the room know the impact the gas crisis is having on the sector, but most importantly it is taking a huge toll on the customers we serve.

“I speak to customers regularly and I know how tough rising energy prices are for many homes and businesses.

“For some, not being able to afford rising energy bills is literally a matter of life and death.”







Jonathan Brearley, Managing Director of Ofgem
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Around 1.5 million British households will struggle to pay food and energy bills amid a deepening cost-of-living crisis that will plunge Britain into recession, a leading think-tank warned today.

Rising inflation, exacerbated by the war in Ukraine, will leave many families with food and energy bills that exceed their disposable income, the National Institute for Economic and Social Research (Niesr) estimates.

She has urged the government to offer emergency aid as it predicts more than 250,000 households will “slip into poverty” over the next year, with the total number in extreme poverty reaching about a million unless urgent action is taken.

Niesr said Chancellor Rishi Sunak should increase Universal Credit payments by £25 a week and give the UK’s 11.3million low-income households a one-off cash payout of £250.







Niesr said Chancellor Rishi Sunak should increase Universal Credit payments by £25 a week
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But today the Prime Minister said the Government could not “fully shield people from the rising cost of living” as he came under fire for failing to use the Queen’s speech to promise more support.

The Prime Minister used the Queen’s speech, first delivered by the Prince of Wales, to set out plans for changes to create a “high wage and high skills” economy, claiming the government program would “lay the foundations for decades to come”. . of prosperity”.

However, charities, activists and opposition politicians have criticized the lack of short-term action to help people facing rising costs in their daily lives.

The prime minister hinted at future aid, using the government’s “fiscal firepower”.

“We will continue to use all our ingenuity and compassion for as long as it takes,” he told MPs.

“The Chancellor and I will say more about this in the next few days.”

Responding to the Queen’s speech, Boris Johnson warned that there were limits to how much public money he was willing to commit to dealing with a global economic crisis.

But he told MPs: “We will continue to use all our ingenuity and compassion while it lasts.

“The Chancellor and I will say more about this in the next few days.”

Households are currently facing soaring energy bills, inflation is expected to reach 10%, and social benefits and wages cannot keep up with rising prices.

Union leader Sir Keir Starmer called the response to the cost-of-living demands “pathetic” and accused the government of being “incompetent”.

He told Mr Johnson: “This government’s failure to let the economy grow over a decade, combined with its inertia in the face of spiraling bills, means we are looking down the barrel of something we haven’t seen in decades, one stagflation crisis. ”

Torsten Bell, chief executive of think tank Resolution Foundation, said ministers had “not announced anything that will make a significant difference” to boost economic growth.

The former Labor adviser tweeted: “Nothing major today on the near-term cost of living nightmare – the government has basically decided to wait until September (when we find out how bad winter energy prices are going to be).

“The pattern here is that aid is too slow, too small, and poorly targeted.”

The Government highlighted the £22 billion package to help with energy bills, tax cuts and other measures previously announced.

Mr Johnson said the “aftershocks of Covid-19 and the biggest war in Europe since 1945” are causing disruption around the world, with all major economies facing pressure on the cost of living.

Alison Garnham, executive director of Child Poverty Action Group, said “this speech was a far cry from what struggling families needed to hear today” and “offered no short-term comfort to parents struggling to feed their children in the face of skyrocketing prices”. .

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https://www.mirror.co.uk/money/breaking-ofgem-boss-tells-households-24674844 Ofgem chief tells Brits to brace for yet another hike in energy bills amid £3,000-a-year war

Fry Electronics Team

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