Get all your news in one place.
100’s of premium titles.
One app.
Start reading
Wales Online
Wales Online
National
Will Maule

Energy bills may increase before October price cap rise, Ofgem warns

Energy bills could shoot up before the expected rise in October, regulator Ofgem has revealed.

Ofgem, along with industry body Energy UK, said it was "possible" for suppliers to raise customers' direct debits 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. It is expected that average household bills could reach £4,200 in 2023, the BBC reported.

Despite the possibility of a further hike in costs, Ofgem did note that customers will be able to ask for their 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 said 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 industry body 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."

The new energy price cap, which will specify the maximum suppliers can charge customers for energy use in England, Scotland and Wales, is expected to be announced at the end of this month before coming into force in October.

The increase is due to the ongoing war in Ukraine forcing up the global wholesale price of gas.

Ofgem said protecting consumers was its "top priority" and that "suppliers must ensure that direct debit payments are based on the best and most current information available to them".

For more stories from where you live, visit InYourArea.

Find recommendations for eating out, attractions and events near you here on our sister website 2Chill

Find recommendations for dog owners and more doggy stories on our sister site Teamdogs

Sign up to read this article
Read news from 100’s of titles, curated specifically for you.
Already a member? Sign in here
Related Stories
Top stories on inkl right now
One subscription that gives you access to news from hundreds of sites
Already a member? Sign in here
Our Picks
Fourteen days free
Download the app
One app. One membership.
100+ trusted global sources.