Ofgem: "Record" gas prices set to drive up energy bills this winter

Regulatory body Ofgem has reported that the energy price cap is set to reach record levels.

The energy price cap will increase from October 1 for the 15 million customers it aims to protect.

Those on default tariffs paying by direct debit will see an increase of £139 from £1,138 to £1277, while prepayment customers will see an increase of £153 from £1,156 to £1309.

The increase is driven by a rise of over 50 per cent in energy costs over the last six months with, gas prices hitting a record high.

Jonathan Brearley, chief executive of Ofgem, commented: “Higher energy bills are never welcome and the timing and size of this increase will be particularly difficult for many families still struggling with the impact of the pandemic.

“The price cap means suppliers only pass on legitimate costs of supplying energy and cannot charge more than the level of the price cap, although they can charge less. If you’re struggling to pay your bill you can get in touch with your supplier to access the help that’s available and if possible, shop around for a better deal.

“We have put tough rules in place to ensure suppliers treat customers who are struggling with bills fairly, and welcome their commitment to reach out to those who most need help this winter. Where help is not forthcoming, we will not hesitate to act.

“I appreciate this is extremely difficult news for many people, my commitment to customers is that Ofgem will continue to do everything we can to ensure they are protected this winter, especially those in vulnerable circumstances.”