Households in Great Britain face an increase in energy bills of £1,578 from October after the regulator raised the energy price cap this morning as expected.
The 80% increase will take the average gas and electricity bill to £3,549 a year.
The £3,549 benchmark will take effect from 1st October 2022 however Ofgem have indicated some suppliers may increasing direct debits earlier to help spread out the cost.
Jonathan Brearley, the chief executive of Ofgem, said: “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.”
Brearley said Russia’s invasion of Ukraine and reduction of gas supplies to Europe had driven the rise in wholesale gas prices. He said that had left Ofgem “no choice” but to reflect cost increases in the price cap.
He added: “The government support package is delivering help right now but it’s clear the new prime minister will need to act further to tackle the impact of the price rises that are coming in October and next year.
“We are working with ministers, consumer groups and industry on a set of options for the incoming prime minister that will require urgent action.”
The next cap will be introduced in January, when it is feared that bills could reach as high as £5,000.
