Ofgem announced yesterday that the price cap will now be reviewed every three months, a shift from the current six-monthly review. On the surface this is a good thing, as it means our household bills will reflect the real costs of energy much more quickly. It will make the energy markets more stable and reduce the number of companies that go bust to a minimum- 28 went bust last year and we are all paying the price in our bills.
However, all the predictions suggest that prices are only going one way for the next few months – up! That means that all of us will see a price hike in October and January!! Predictions are it could rise above £3600 for the average household, and with 75% of households on these tariffs it is going to effect almost all of us.
For the most vulnerable this is going to be a kick in the teeth just after Christmas!! At Severn Wye we are already getting concerned calls from worried householders. With costs rising everywhere people can see yet another price rise coming at the worst possible time.
Severn Wye’s CEO Sandy Hore-Ruthven is imploring Ofgem to reconsider:
I understand the need to make this change, but I would suggest Ofgem should hold off the quarterly changes until Spring next year. People need a break, and more certainty during the winter months will make all the difference to the people who call our advicelines worried about their children going hungry and cold, their grandparents struggling in uninsulated homes and the poorest barely able to make ends meet. We urge Ofgem to hold off one more time!
