Ofgem confirmed a 13% increase to the energy price cap from July 1, raising the typical annual household bill to around £1,862, up by £221 from current levels. Analysts forecast further rises in autumn, with bills potentially reaching about £1,899 for October-to-December as colder weather boosts demand and geopolitical tensions keep energy markets unstable. Campaigners and advice groups warn that many low-income households and pensioners are already falling into arrears and struggling with energy debt. They urge ministers to implement delayed measures, including an energy debt relief scheme, as soon as possible. Forecasts suggest near-term relief is unlikely, and households should not expect prices to fall quickly, even if tensions ease, making targeted short-term support likely necessary.
"Ofgem confirmed that its price cap will rise by 13 per cent from July 1, pushing the typical annual household bill to around £1,862 - an increase of £221 on current levels. Analysts now warn that costs could climb further in the autumn, with forecasts suggesting a further rise to around £1,899 for the October-to-December period as colder weather increases demand and geopolitical tensions continue to unsettle energy markets."
"The prospect of sustained higher bills has triggered calls for the Chancellor to set out targeted support for low-income households, with campaigners warning that many families are already falling into arrears and struggling to manage energy debt. Simon Francis, co-ordinator of the End Fuel Poverty Coalition, said rising prices were leaving pensioners and low-income households increasingly exposed ahead of winter, urging ministers not to delay action until later in the year."
"Gillian Cooper, director of energy at Citizens Advice, warned that a key proposed support measure - an energy debt relief scheme - had been repeatedly delayed, calling for it to be implemented "as soon as possible". Forecasts from Cornwall Insight suggest that while price increases may moderate slightly, there is little prospect of near-term relief."
"Dr Craig Lowrey said households should not assume prices will fall quickly, even if geopolitical tensions ease, pointing to ongoing disruptions in global supply chains and market confidence. He added that households should not "bank on lower bills later in the year", arguing that some form of targeted short-term support would likely be necessary."
Read at London Business News | Londonlovesbusiness.com
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