Scots have been told to cut back on their energy use following the announcement of the price cap by 80 per cent earlier today. Chancellor Nadhim Zahawi said earlier this week that people should continue using as much gas and electricity as they want, however he has now performed a u-turn.
Regulator Ofgem announced this morning that the energy price cap will increase from the current £1,971 to £3,549 from October 1.
Zahawi was asked if people should start reducing their energy use, he replied: "The reality is that we should all look at our energy consumption. It is a difficult time. There is war on our continent. Very few people anticipated war. Wars happen in far-flung places. It is now here with us. We have to remain resilient. My responsibility is to deliver that help."
Zahawi's comments come as Prime Minister Boris Johnson said he does not think the Government should "cap the whole thing" for "the richest households in the country".Speaking to broadcasters during a visit to South West London Elective Orthopaedic Centre in Surrey, the PM addressed today's energy cap announcement and what the Government is doing to support households with rising energy bills.
He said: "We want to target the households so most of the money will go to the eight million most-vulnerable households, that's the right thing to do. A lot of money will be going to absolutely everybody. What don't think we should be doing is trying to cap the whole thing for absolutely everybody, the richest households in the country.
"This will go on for a few months and it will go on over the winter. And it will be tough - and I'd be very clear about that - but in the end, we are also putting in the measures we need to ensure that we have the energy independence to get through this.
"And we are putting in more nuclear, and we are putting in more wind power. We have already seen a 26 per cent increase in British gas now from the North Sea.
What is the new energy price cap?
Ofgem, the industry regulator, announced earlier today that bills would increase by 80 per cent on October 1. The current cap is £1,971-per-year however that is due to rise to £3,549. Around 24 million households across the United Kingdom will be hit by the rise which is due to last until December 31 when a new cap will be introduced.
When is the next energy cap announcement?
The next official announcement by Ofgem is set to take place on November 24, 2022. It will then come into effect on January 1, 2023. According to Cornwall Insight the cap could rise to £4,650-a-year at the start of next year.
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