Government has to act now, as millions more face fuel poverty as Ofgem increases the energy price cap to £3,549

GoCompare Energy says that now is the time for the government and energy companies to act as the energy price cap today rises to £3,549*, up from £1,971. This means that some bill payers could see their annual energy costs increase by nearly 80% in 2022.

The new energy cap will come into force on October 1^st 2022 and could mean that households on a variable tariff could see their annual energy bills jump by £1,578.

Lee Griffin, energy spokesperson for GoCompare Energy, said:

“This latest price cap increase will be another blow for the finances of many British families this winter. It is untenable, it is unworkable, and it has to be sorted. Taking action on energy price increases must be the top priority for the new Prime Minister, whoever it might be. This situation cannot carry on and having another price cap coming in January is only going to mean even more uncertainty for bill payers.

“The government needs to be working collaboratively with consumer groups, charities, energy suppliers and other political parties to come up with an immediate and comprehensive support package for consumers and businesses. It has a duty of care to help relieve the pressure that homeowners and businesses are facing.

“We do feel that the time for energy saving tips to save money on your bills has long past but saving energy to reduce your carbon footprint is always a good thing to do. We do still recommend preparing yourself, as much as you can, for the winter months, as well as doing what you can to control energy usage within the home, including:

• If you can afford to, use these summer months – when we traditionally use less energy – to catch up on any arrears you may have with your energy provider, and make sure you are regularly providing meter readings so that your bills are up to date.
• Also try to resist asking for credit balances to be returned (if you are lucky enough to have one) or if you do, try to keep it in the bank for your next bill increase.
• And again, if you can, increase your monthly Direct Debit spend now so that the next rise comes as less of a shock.
• You could always think about implementing any energy efficiency advice that you may have previously been putting off. It’s easier to do lots of those things in the summer than in the wintertime. For example, replacing windows and doors, boiler servicing or replacement, or flushing radiator systems to improve efficiency.

The energy price cap is determined by Ofgem and is now reviewed by the regulator every three months, meaning that the next review will be in November 2022, with prices changing in January 2023. The price cap was introduced in 2019 to ensure that households will always pay a fair price for their gas and electricity bills and preventing suppliers from overcharging customers that did not switch and were put on the suppliers' standard variable tariff (SVT).

For information about how you can save on your energy costs, please visit the following link: https://www.gocompare.com/gas-and-electricity/guide/energy-saving-tips.

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