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Live coverage as regulator Ofgem announces 10% increase in average household energy billFour in 10 consumers are still having to cut back their non-essential spending due to the cost of living, according to KPMG, an accountant.Ofgem told British consumers to “shop around”. But that message has not quite got through to households, who are hard-pressed.Rising energy prices will be a huge concern for the many households who are not on fixed deals just as we enter the winter months. Average dual fuel bills remain well above the levels prior to Russia’s invasion of Ukraine and the fact that prices remain slightly below the levels of last winter will be of little comfort to those households.Switching appetite remains well below the levels seen before the price cap was even introduced. The price cap has effectively become the default tariff over the past 18 months, which limits the incentives for investment and innovation. So, it is important that reform of the retail market remains a priority for the government and the regulator if we want to reap the benefits of a smarter, greener energy system.As we move into the colder months, a lift in bills, while expected, is certainly not welcome. Unfortunately, a volatile wholesale market, and a country heavily reliant on imported energy has created a perfect storm for fluctuating household bills.Today’s announcement, coupled with our forecasted energy price hikes in the new year, will only intensify the calls for government action to protect vulnerable households. There is a range of options available for the new government, from social tariffs to targeted support. But with just over a month until the cap increases – coupled with the fact that Parliament in on its summer recess – time is not on their side. Continue reading…
Live coverage as regulator Ofgem announces 10% increase in average household energy bill
Four in 10 consumers are still having to cut back their non-essential spending due to the cost of living, according to KPMG, an accountant.
Ofgem told British consumers to “shop around”. But that message has not quite got through to households, who are hard-pressed.
Rising energy prices will be a huge concern for the many households who are not on fixed deals just as we enter the winter months. Average dual fuel bills remain well above the levels prior to Russia’s invasion of Ukraine and the fact that prices remain slightly below the levels of last winter will be of little comfort to those households.
Switching appetite remains well below the levels seen before the price cap was even introduced. The price cap has effectively become the default tariff over the past 18 months, which limits the incentives for investment and innovation. So, it is important that reform of the retail market remains a priority for the government and the regulator if we want to reap the benefits of a smarter, greener energy system.
As we move into the colder months, a lift in bills, while expected, is certainly not welcome. Unfortunately, a volatile wholesale market, and a country heavily reliant on imported energy has created a perfect storm for fluctuating household bills.
Today’s announcement, coupled with our forecasted energy price hikes in the new year, will only intensify the calls for government action to protect vulnerable households. There is a range of options available for the new government, from social tariffs to targeted support. But with just over a month until the cap increases – coupled with the fact that Parliament in on its summer recess – time is not on their side.
