Families are being warned that they should expect the biggest increase in gas and electricity bills in a decade when the energy cap is raised later this year.
Approximately 15 million homes across the United Kingdom could be affected by the decision to raise the energy price cap in October, with the average price set to rise by £150 per year.
Next week, regulator Ofgem is expected to announce a 13 per cent rise in the energy cap for half the population, with householders expected to foot substantial bills in the wake of the COVID 19 pandemic.
That decision could see the average yearly tariff increase to £1,288 for millions of homeowners, with comparable increases also expected for those in pre-pay plans.
Ofgem chief executive Jonathan Brearley advised homeowners that despite a tough 18 months, prices of fossil fuels continue to rise at an abnormal rate in a move that will ultimately hit customers pockets.
The news follows a £96 per year hike in prices after the price cap rose in April.
With providers expected to raise prices to meet the increasing cap, experts warned bills could rise by the highest amount since 2011.
Ofgem said its hands were bound on the decision because of abnormal increases in wholesale costs of fossil fuels, especially gas.
Writing in a blog earlier this week, Jonathan Brearly said that he knew that the last 18 months had been difficult for numerous households as a result of the COVID 19 crisis.
He said that increasing inflation and the forthcoming end of the furlough scheme on top of the impact that the pandemic has had on people’s resources means that family finances were tight now.
He said that sadly, against this backdrop, he was warning consumers that global prices for fossil fuels, particularly gas, were growing at an abnormal rate and that this would feed into all customer energy bills in the United Kingdom.
And that regrettably, the rise in wholesale prices would feed through to the price cap, and although the final analysis was not complete and other costs would also determine the overall level, it could add about £150 per household to the next level of the price cap.
The energy cap, introduced by the Government in January 2019, is updated twice a year and reported to have saved each household £100 a year since its inception, but in April, the cap was raised by £96 per year in a move consumer groups described as a heavy blow to a lot of homes.
And if COVID doesn’t get the elderly, then freezing them to death might!
Some people still think that the lockdowns were about protecting the vulnerable, yet Matt Hancock sent them to care homes to die.
This actually shouldn’t be happening in the 21st century, but it is because there’s a lack of investment by energy companies, and the shareholders only take the money and sweat the assets, which is why the infrastructure is disintegrating.
And what they pay the CEO’s and directors, great whacking salaries and gratuities for administration is laughable. Welcome to the world of Margaret Thatcher and the Conservatives, and all those people that voted for her.
A lot more elderly people are going to die each winter now because of this, but then, perhaps that’s the idea, and this is just another face to their democide policies, while they squeeze every last penny out of our pockets, and if you weren’t in poverty before this, then Boris Johnson will make sure you will be now.