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The price cap on energy bills is set to rise to £2,800 in October, Ofgem boss warns

The news comes as Chancellor RIshi Sunak is considering an unexpected tax on power generators and oil and gas giants to help struggling households.

Stressed hispanic couple paying bills on laptop
The average Safe Hands customer loses £2,400 to £2,700

The energy price cap could rise to £2,800 in October, the Ofgem chief warned MPs this afternoon.

Jonathan Brearley told the Commons Business Committee that the price cap, now at £1,971, would rise by almost £1,000 due to the volatile gas market.

The news comes as Chancellor RIshi Sunak is considering an unexpected tax on power generators and oil and gas giants to help struggling households.

Mr Brearley told MPs: “I know this is a very stressful time for customers but I need to make clear to this committee, customers and the Government the likely impact on prices for October.

“Therefore I will be writing to the Chancellor later today to give him our latest estimates of the price cap increase.

“This is uncertain, we are only partially through the price cap window but we expect a price cap in the region of £2,800 in October.”

Former Ofgem Chief Executive Dermot Nolan told MPs that the regulator could have stopped some of the sector’s defaults “if we had acted more quickly”.

Mr Nolan, who headed the regulator between 2014 and 2020, told the Business, Energy and Industrial Strategy Committee that “politics” wanted Ofgem to prioritize competition over regulatory oversight as the “Big Six” companies had a lasting share of 98%. up to 99% of the market.

Mr Nolan said that from around 2015 “many” new firms entered the market under a “permissive” regime “which was encouraged by the government but was also a conscious decision by Ofgem’s board”.

However, from 2017/18 it became clear that “in certain cases companies had entered the market in a speculative manner that it was probably not reasonable and not fair to do so and we had to do something about it”.

Mr Nolan said: “I don’t think any regime would have been entirely fit for purpose, but I accept that if we had acted faster we would have stopped some of the mistakes that have happened.”

This is a groundbreaking story.

https://www.mirror.co.uk/news/politics/breaking-energy-price-cap-rise-27051033 The price cap on energy bills is set to rise to £2,800 in October, Ofgem boss warns

Fry Electronics Team

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