Ofgem: Price cap predicted to increase by £830 in October

The price cap could rise to around £2,800 a year, Ofgem’s Chief Executive has said

Big Zero Report 2022

The energy regulator has today predicted that energy bills could rise even further in October with a new price cap “in the range of £2,800”.

Addressing the Business, Energy and Industrial Strategy Committee, Jonathan Brearley, Ofgem’s Chief Executive said: “Conditions have worsened in the global gas market with Russia’s invasion of Ukraine.

“Gas prices are higher and highly volatile. At times, they have now reached over ten times their normal level. Now, I know this is a very distressing time for customers, but I do need to be clear with this committee, with customers and with the government about the likely price implications for October.

“Therefore, later today, I will be writing to the Chancellor to give him our latest estimates of the price cap uplift.”

The current price cap is £1,971 a year, a £693 rise from the previous cap. 

Mr Brearley added: “Now this is uncertain. We are only part way through the price cap window, but we are expecting a price cap in October in the region of £2,800.”

Earlier this month, Ofgem proposed updating the price cap every three months.

If you enjoyed this story you can sign up to our weekly email for Energy Live News – and if you’re interested in hearing more about the journey to net zero by 2050, you can also sign up to the future Net Zero newsletter. 

Latest Podcast