Ofgem, the energy regulator, has today announced that the energy price cap is to rise by £693.
The 54% increase, coming into effect in April, will result in energy bills increasing to £1,971 a year and affect around 22 million customers on standard tariffs.
In an Ofgem energy price cap press release, Jonathan Brearley, chief executive of Ofgem, said: “We know this rise will be extremely worrying for many people, especially those who are struggling to make ends meet, and Ofgem will ensure energy companies support their customers in any way they can.”
Today’s news will be devastating blow to the UK’s most vulnerable people. Low-income families will be hit the hardest and charity, National Energy Action has warned that the number of households estimated to be living in fuel poverty, could rise to 6 million.
See our top 7 things you need to know about the energy price cap here.
Chancellor Rishi Sunak has responded by outlining plans to ease the cost of living pressures after the energy price cap rise:
- All domestic electricity customers will receive a £200 discount on their electricity bills. From October, the discount will automatically be repaid from households bills in equal £40 instalments over the next five years
- Council tax bands A to D will receive a £150 council tax rebate in April, resulting in a saving for 80% of council taxpayers
- The government will also provide £150 million for local authorities in England to help low-income households
Sunak responded to the question; Should VAT on gas and electricity be cut? By stating that this would disproportionately help wealthier households. He added there would be no guarantee that energy suppliers would pass on the savings and even suggested that it would become "a permanent government subsidy".
Find out more about government funded energy discounts here
Find out more about additional funding for residents here
About Energy Angels
Wolverhampton-based Energy Angels make housing associations and social landlord’s substantial savings each year through reduced energy costs and time savings, as well as support them in their own carbon reduction goals.
Any housing associations and social landlords serious about reducing their energy and administration costs should access our void energy management team.
Energy Angels work closely with our housing partners to ensure smart meters are installed in empty properties. If the whole nation got a smart meter, we could save the same amount of energy as it takes to power every household in Aberdeen, Cardiff and Manchester for a year.
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