The UK’s vitality price cap is expected to rise in October to round £2,800, Ofgem’s chief government says.
The cap which applies till 31 September is at present £1,971 a year, which was itself a 54% or £693 rise from the earlier cap six months earlier.
Ofgem chief government Jonathan Brearley has advised the Business, Energy and Industrial Strategy Committee that in October it is going to be “in the region of £2,800”.
He stated: “I’m afraid to say conditions have worsened in the global gas market, with Russia’s invasion of Ukraine.
“Gas costs are greater and extremely risky.
“At instances they’ve now reached over 10 instances their regular degree.
“I do know it is a very distressing time for patrons however I do want to be clear with this committee, with prospects, and with the federal government in regards to the seemingly price implications for October.
“Therefore, later today, I’ll be writing to the chancellor to give him our latest estimate of the price cap uplift.
“This is unsure, we’re solely part-way via the price cap window, however we’re anticipating a price cap in October in the area of £2,800.”
He added: “Our future eventualities once we look past that, we’re actually managing between two excessive variations of occasions – one the place the price falls again down to the place it was earlier than, for instance if we did see peace in Ukraine, and one the place costs might go even additional if we have been to see, for instance, a disruptive interruption of fuel from Russia.”
Mr Brearley described the current situation as “genuinely a once-in-a-generation occasion not seen for the reason that oil disaster of the Seventies” however this can be little consolation to folks in the UK already coping with rises in meals, gasoline, and taxes.