The Tories’ failure to tackle rocketing energy-bills risks triggering a wave of winter deaths, experts warned yesterday as Ofgem confirmed a “sickening” 80 per cent hike.
The regulator announced its price cap for a standard tariff customer would leap to £3,549 a year from October 1, meaning energy bills have almost tripled in the past year.
Ofgem said it would equate to the cost of filling a car with fuel rocketing to £500.
The hike, which is predicted to leave 8.9million people in fuel poverty, was forecast as far back as March, and consumer champion Martin Lewis said: “This is shocking, but it is not a surprise. What is staggering is that we have allowed this announcement to be made.
“Why have we got to this stage and still no firm help? This is not good government.
“If we do not get further Government intervention, on top of what was announced in May, then lives will be lost this winter.”
The rise affects 24million households, with 4.5million on prepayment meters facing paying more than £700 in January alone, campaigners fear.
Matthew Reed, of end-of-life care charity Marie Curie, said: “Terminally ill people could freeze to death this winter without further support.
“The need to stay warm to keep pain at bay and power specialist medical equipment means energy bills for some terminally ill people will be thousands of pounds higher than the average household.”
Government officials have indicated decisions on help will not be made until the new Tory PM – either frontrunner Liz Truss or Rishi Sunak – is picked on September 5.
PM Boris Johnson now claims the Government has a “big, big package of help and support”, with “extra cash” to come in September.
Chancellor Nadhim Zahawi predicted “tough” months ahead.
The multi-millionaire said the Government was working on options for both households and businesses for the incoming Prime Minister.
He said: “We need to ensure this isn’t a sticking plaster, that for the long term we continue to help the most vulnerable.”
Ofgem’s price cap rise will allow energy suppliers to claw back huge increases in wholesale gas prices, fuelled by the war in Ukraine.
Ofgem chief executive Jonathan Brearley said: “It’s clear the new Prime Minister will need to act further to tackle the impact of the price rises.”
Ofgem warned prices “could get significantly worse through 2023”.
Mr Brearley said the regulator had to make “difficult trade-offs” setting the price cap, which was designed to ensure “unfair profits aren’t charged by those companies that buy and sell energy”.
On Channel 4 News, Mr Brearley said: “Right now, those profits in that market are 0 per cent.”
The price cap would stop energy firms failing.
He said: “When companies fail those costs come back to all of us. So, over and above the price we pay, we’d be paying more to re-buy the energy for customers that come from failed companies.”
The £3,549 cap for standard tariff customers paying by monthly direct debit is a rise of almost £2,300 in the past year and more than wipes out wage rises for average workers.
The Resolution Foundation said those on prepayment meters could face bills of £714 in January, while the Joseph Rowntree Foundation said energy bills would eat up almost half the income for the poorest fifth of households. For some single adults it would be more than their income, leaving many “destitute”.
Peter Matejic, the Foundation’s chief analyst, said: “It is a sheer fantasy to think struggling families can pay these stratospheric energy bills without further Government intervention on a significant scale.”
Unison dubbed the price hike “sickening.”
Christina McAnea, general secretary, said: “This is beyond a disaster for struggling households.”
Consultants Cornwall Insight warned bills would jump to £5,386 a year in January and £6,616 in April, while Auxilione forecast the cap could even hit £7,263 next April.
About 100 protesters demonstrated outside Ofgem’s HQ in Canary Wharf in London yesterday.
The protest was promoted by Don’t Pay UK, which is “building a mass non-payment strike of energy bills starting on October 1”.
