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26th Aug 2022

Energy bills set to skyrocket as price cap hits £3,549

Danny Jones

energy bills price cap october ofgem

Dire circumstances go from bad to worse

UK regulator Ofgem have announced that energy bills are set to soar even further as the price cap is now said to jump from £1,3971 a year to £3,549 in October.

From October 1, the typical energy bill for a year will rise to £3,549 for the those on standard variable tariffs and as much as £3,608 for those on prepayment meters.

The price hike will see the regular everyday cost of energy shoot up by a whopping 80 per cent, around £300 a month per home, in an update that even Ofgem boss Jonathan Brearley has admitted will be “devastating for many families”.

Brearley told the BBC that “All of us, with the government, need to get ahead of this problem and manage it on behalf of customers because the outlook for winter without any action looks very difficult indeed”.

Delivering the damning news that will effect more than 24 million homes across the country, he added that whoever the next Prime Minister chosen on September 5 is, they “need to act urgently and decisively to address this”.

Money Saving Expert Martin Lewis issued a similar message to the incoming PM too; breaking down the latest figures this morning, he also noted that the latest price cap is a full £750 more than the previous estimates which the UK government based their one-off £400 energy relief discount on.

Worse still, the price cap is likely to be reviewed again later this year and recent estimates suggest that annual figures could reach above £5,000 by April 2023, meaning Brits will be paying more than triple that what they have been for the majority of 2022.

As the the colder temperatures approach, another serious concern is that UK households are already in £1.3 billion of energy debt before autumn and winter have even arrived.

It is usually during the summer months that people save money and often sit in a surplus of energy credit, making it easier as the year goes on, but it would seem people are already having to pay more for their usage even during a hot summer.

Lewis went on to appear on BBC Breakfast to urge the government for immediate action.

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