Energy bills are expected to skyrocket in October for millions of households across the UK according to regulator Ofgem.
Chief executive Jonathan Brearley is writing to Chancellor of the Exchequer Rishi Sunak forecasting that the cap could rise sharply from the current value of £1,971.
Speaking to the Commons business committee, he stated: “I know this is a very distressing time for customers.
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“But I do need to be clear with this committee, with customers and with the Government about the likely price implications for October.
“Therefore later today, I will be writing to the Chancellor to give him our latest estimate of the price cap uplift.
“This is uncertain, we are only part way through the price cap window, but we are expecting a price cap in October in the region of £2,800.”
He continued: “I am afraid to say conditions have worsened in the global gas market since Russia’s invasion of Ukraine. Gas prices are higher and highly volatile. At times they have now reached over 10 times their normal level."
“The price changes we have seen in the gas market are genuinely a once-in-a-generation event not seen since the oil crisis of the 1970s.”
Boris Johnson has stated there will be help available, though has not yet to set out what this will entail and when it will be available.
The Prime Minister’s official spokesman said: “Some of the support is designed to come in in October, £200 will be discounted from energy bills, the warm home discount will increase to £150 and be expanded to cover three million people, cold weather payments and winter fuel payments will be available again.”
Taking to Twitter, MoneySavingExpert founder Martin Lewis wrote: "The Ofgem Chief Exec has told MPs the price cap will rise c42% in Oct putting typical use to £2,800/yr.
"I'm glad he's been open about this, I asked last week for them to publish forward guidance. This is higher than analysts predictions of £2,600 (both bloody awful though)."
