Ofgem has announced today (26 August) it will increase the energy price cap to £3,549 per year for dual fuel for an average household once in effect from 1 October 2022.
The increase reflects growing concerns around the global wholesale gas market with prices expected to surge in the winter months. High wholesale prices over the second half of 2021 and into the beginning of 2022 led to nearly 30 suppliers collapsing, along with Bulb entering Special Administration, since September.
In order to prevent a similar catastrophe for suppliers this winter, the increase protects energy companies whilst also providing consumers with the best set energy rates. This is of importance with 60% of remaining smaller energy suppliers “technically insolvent”, according to accountancy firm Price Bailey.
“We know the massive impact this price cap increase will have on households across Britain and the difficult decisions consumers will now have to make. I talk to customers regularly and I know that today’s news will be very worrying for many,” said Jonathan Brearley, CEO of Ofgem.
Read more: Current+
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