The Chancellor Nadhim Zahawi has blamed Putin's Ukraine invasion for a confirmed energy price cap hike that will see more households plunged into poverty this winter.
Ofgem announced on Friday the energy price cap will increase from the current £1,971 to £3,549 from October 1. The energy regulator currently updates its price cap twice a year - in April and October. But now, the regulators will review the cap every January, April, July and October.
Ofgem says the idea of reviewing its price cap more often is so energy companies can provide more accurate pricing for customers. It means millions of households who are on a standard variable tariff will see more frequent changes to their energy bills.
READ MORE: Huge energy cap price hike confirmed for October as cost of living crisis worsens
Responding to the announcement, Mr Zahawi said: “I know the energy price cap announcement this morning will cause stress and anxiety for many people, but help is coming with £400 off energy bills for all, the second instalment of a £650 payment for vulnerable households, and £300 for all pensioners.
“While Putin is driving up energy prices in revenge for our support of Ukraine’s brave struggle for freedom, I am working flat out to develop options for further support. This will mean the incoming Prime Minister can hit the ground running and deliver support to those who need it most, as soon as possible.”
But while Russia's invasion of Ukraine is one factor in the skyrocketing prices, there are other reasons for the hikes. Wholesale energy prices have been soaring for some time, with price cap warnings being issued well before Russia's Ukraine invasion began in February.
At that time, Ofgem said increases were being driven by "a record rise in global gas prices over the last 6 months, with wholesale prices quadrupling in the last year".
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