The energy watchdog Ofgem, which updates the energy price cap, have today confirmed it will now be updated quarterly instead of every six months.
The watchdog claims the change will help stabilise the energy market and reduce the risk of more suppliers going bust.
Ofgem chief executive Jonathan Brearley said: “I know this situation is deeply worrying for many people.
“As a result of Russia’s actions, the volatility in the energy markets we experienced last winter has lasted much longer, with much higher prices than ever before. And that means the cost of supplying electricity and gas to homes has increased considerably.
“The trade-offs we need to make on behalf of consumers are extremely difficult and there are simply no easy answers right now.
“Today’s changes ensure the price cap does its job, making sure customers are only paying the real cost of their energy, but also, that it can adapt to the current volatile market.
“We will keep working closely with the Government, consumer groups and with energy companies on what further support can be provided to help with these higher prices.”
The energy cap is set to rise to £3,359 per year from October for the average home with estimates that it will continue to rise to £3,616 from January and rise further to £3,729 from April.
Director of Policy and Advocacy at National Energy Action Peter Smith said: “Ofgem moving ahead now with passing price cap changes on to households quarterly rather than every six months wasn’t necessary and unfortunately means further significant price increases in January are inevitable.
“Average annual bills are already predicted to increase by £1,200 a year – a 177 per cent increase since last October. Now, householders can expect further hikes just after Christmas, in the middle of heating season when energy costs are typically at their highest.
“January is also usually a time of increased mental health problems and further hikes in bills will sadly lead to increased misery and huge anxiety for energy consumers across Great Britain, particularly for the poorest households. It’s disappointing that Ofgem has not listened to these concerns. They could have used their discretion to offset this avoidable outcome by starting the reforms in April when energy demand starts to fall.
“This change also strengthens the growing calls for deeper price protection for the poorest households, something Ofgem can and must help support.”
