Get all your news in one place.
100’s of premium titles.
One app.
Start reading
Daily Mirror
Daily Mirror
National
Lucy Skoulding

Ofgem rule hidden in small print means energy prices could keep rising quickly

Ofgem has buried another measure in its small print which could see energy bills increase further this year.

The new measure will allow the energy regulator to review prices more frequently, possibly causing yet more pain for households struggling with the hike.

Ofgem confirmed today that the new energy price cap will increase to £1,917 from April 1 2022.

It's a 54 per cent increase meaning an average of £693 a year will be added to energy bills.

This energy cap tends to be reviewed twice per year - in April and October - but the new rule means it could change more frequently.

It comes as Ofgem has said it will announce more measures that will help the energy market tomorrow.

It's a 54 per cent increase meaning an average of £693 a year will be added to energy bills. (Getty Images)

In a statement it said: "The further measures include enabling Ofgem to update the price cap more frequently than once every six months in exceptional circumstances to ensure that it still reflects the true cost of supplying energy."

The Bank of England has today doubled interest rates to 0.5 per cent, increasing yearly mortgage payments by about £700.

And inflation has hit a 30-year high now sitting at 5.4 per cent. It's added a whopping £180 to the average grocery shop.

Households are facing increases in council tax and other areas of life (Getty Images/iStockphoto)

Council tax, national insurance and train fares are among other cost increases that are facing households at the moment.

Head of personal finance at AJ Bell Laura Suter told The Sun that Ofgem's choices were based on needs to help suppliers that are currently operating at a loss.

As a result of rising energy costs and the price cap, 29 energy suppliers have gone bust or into special administration since last summer.

Martin Lewis has been telling households to "do nothing" and stay on the price cap because of the lack of cheap deals on the market.

Speaking last week, the MoneySavingExpert founder said his best advice was for households not to fix into an energy deal unless they can find a tariff that is no more than 50% over the price cap.

No one can know for certain how much bills could go up again later this year. (Getty Images)

But he warned that his comments are based on "lots of assumptions" on how the energy market could play out - including a possible 20% jump in energy bills again this October.

No one can know for certain how much bills could go up again later this year.

Chancellor Rishi Sunak today confirmed help worth £350 from the government to help toward the cost of living crisis.

The Chancellor told MPs that eligible people would get a £150 discount on their council tax in April and a £200 rebate in October off their bills.

The £200 help with bills will be met in full by the government - but will be repaid by customers in equal £40 instalments from April 2023, when it's hoped prices will have dropped.

The council tax rebate won't need to be repaid and will be for households in Bands A to D.

Thousands of struggling households may also be eligible for a one-off payment worth £140 to help toward the cost of their energy bills through the Warm Home Discount scheme.

The help must be applied for directly through your energy supplier - but most firms have already closed their schemes for this year.

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.