Energy prices stuck in high gear for next two years, warns regulator

Ofgem’s Jonathan Brearley has predicted a prolonged period of elevated electricity and gas prices

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The head of Ofgem, Jonathan Brearley, has stated that he anticipates electricity and gas prices to remain relatively high “in the medium term.”

His remarks come as consumers continue to grapple with soaring energy bills following the surge in prices that began in late 2021.

When pressed for clarification on the timeframe, an official from Ofgem explained that Brearley’s comments implied a duration of at least two years.

This forecast suggests that households and businesses should not expect a significant drop in energy costs in the near future.

According to industry experts, energy bills are set to stay approximately 60% higher than they were prior to the energy price surge.

Yesterday, Ofgem announced that the energy price cap, which aims to protect consumers from excessively high prices, is scheduled to decrease from £3,280 to £2,074 starting in July.

While this reduction may offer some relief, it falls short of fully mitigating the overall impact of the ongoing price surge. 

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