Ofgem announces increase of the energy price cap
Ofgem announces increase of the energy price cap Aug 26, 2022
Government regulator Ofgem have just announced a higher energy price cap, which will see an 80% increase in energy payments from the 1st of October 2022.
The energy price cap is currently based on the average consumption, and has now been increased to £3549 a year.
Ofgem have warned that some suppliers may begin to increase direct debits before October, so costs are more spread out for customers and they can somewhat avoid higher payments of up to £300 a month.
The price cap is not universal, with some households paying more than others depending on usage, such as large families.
It was announced as £1277 a year in October 2021, and has been found to have reached 'record levels' since Russia invaded Ukraine, massively impacting the energy market.
The price cap was originally introduced to stop energy companies from having excessive profit margins, but with this year's large increase it has been acknowledged that many households may struggle with costs due to the impact the price of energy is having on utility bills.
We encourage anyone worried about struggling to pay their bills this winter to contact us for information on energy saving methods, or access many of the resources available to help via our Energy Consumer Advice Guidelines.