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Manchester Evening News
Manchester Evening News
Business
Will Maule & Thomas Molloy

Energy bills could go up BEFORE October pay cap rise, Ofgem says

Energy bills could go up prior to the expected rise in October, the UK's energy regulator has said.

Ofgem, along with industry body Energy UK, said it was "possible" that customers' direct debits could be increased by suppliers, ahead of the new energy price cap being introduced in the Autumn. The rises would help spread the cost of higher energy use in the winter, Ofgem said.

A new price cap - determining the maximum suppliers can charge customers for energy usage in England, Scotland and Wales - is due to be announced at the end of this month, but will come into effect in October. BBC reported that average household bills are forecasted to reach £4,200 by 2023.

READ MORE : DWP update on when everyone will get their £400 energy bill discount

Despite the possibility of a further hike in costs, Ofgem did state that customers will be able to ask for any excess credit to be "returned at any time and can contact their suppliers to change how their direct debit is spread".

"For example, they pay for exactly what they used in that month and do not build up a credit ahead of winter," the regulator added.

Energy UK, a trade association that represents more than 100 energy suppliers and generators, added that direct debits were "reviewed periodically" with suppliers taking into account a number of factors including current tariffs, estimated usage and recent meter reads. "It is, therefore, possible some customers' direct debts will change in advance of October," the company said in a statement.

"All suppliers must, however, ensure that direct debits are set correctly based on all relevant information available at the time of review, and that they communicate any changes in a way that helps consumers understand their payments for energy."

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