Five million vulnerable households face a £57 annual increase in their energy bill after the regulator told suppliers that they could put up prices. Ofgem blamed rising wholesale gas and electricity prices and the cost of government green energy schemes for the 5.5 per cent rise in its price cap. The government is preparing to extend the price cap to 11 million more households but Ofgem’s decision calls into question Theresa May’s pledge that the policy would prevent “unexpected and significant” rises in bills. Suppliers may use Ofgem’s admission of rising costs to attempt to justify increases for others. Yesterday industry sources said that price rises were likely.
Times 8th Feb 2018 read more »