Energy price cap: What time will Ofgem announce the new price cap? How high it could go
Energy bills: 'Possibility' of 'blackouts this winter' says Halligan
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Britons struggling to pay their bills will be anxiously awaiting the next announcement from Ofgem. The energy regulators – who determine how much UK-based energy firms can charge their customers – are due to announce changes to the price cap on Friday, August 26. Analysts fear the announcement will saddle already pressed households with almost double the burden.
What time will Ofgem release the new price cap?
People won’t have to wait long for Ofgem to release the new price cap, with an announcement due early in the morning.
Ofgem will reveal the new cap by 7am on August 26, but it won’t apply for another couple of months.
The price cap announced today will adjust bills from October 1 to December 31.
How high will bills go?
Britons currently pay £1,971 a year, an increase of £693 from April, when Ofgem raised the price cap from £1,277 to £1,971.
Economic forecasters Cornwall Insight fear Ofgem may decide to nearly double this on August 26.
The analysts predicted direct debit customers would have to pay an additional £1,583 from October 1, with a new price cap of £3,554.
When is the next price cap announcement?
On August 4, Ofgem announced that it was changing the frequency of its price cap adjustments.
The move, designed to offer “stability” due to rapidly changing fuel costs, means there is another price cap announcement in November.
The last announcement of 2022 is due on November 24, and any decisions made on that date will apply from January 1.
Cornwall Insight predicts people will enter the new year with more than £1,000 added to their annual bills.
The firm forecast an increase of £1,196, bringing Ofgem’s price cap to £4,650 in 2023.
Ofgem has urged “extreme caution” with any predictions around how much it could raise the cap.
The regulators have released their price cap adjustment schedule for early 2023.
The first price cap announcements of 2023 and the dates from which they apply are as follows:
- February 27, 2023 (applicable from April 1)
- May 26, 2023 (applicable from July 1)
- August 25, 2023 (applicable from October 1)
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