Ofgem Expected to Raise Energy Price Cap as Support Options Are Considered
Ofgem is expected to announce on Wednesday an increase in the energy price cap for the October to December period, with forecasts from Cornwall Insight indicating a typical annual bill will rise by about 4% to roughly £1,729-£1,941, depending on the estimate, due to higher wholesale prices linked to the Middle East conflict. Energy Secretary Miatta Fahnbulleh, in a Reddit Q&A, said the government is looking at 'a range of support' for vulnerable households and acknowledged standing charges are too expensive, with a review underway. Citizens Advice research found that over 10 million households (37%) are worried about affording energy bills this winter, and 3.5 million are in energy debt. The Prime Minister has already planned to remove VAT on electricity from October, and the warm home discount remains at £150 for eligible households.
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