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Higher energy bills 'almost inevitable' says Ofgem - Perthshire Chamber of Commerce

Higher energy bills 'almost inevitable' says Ofgem

Households are heading for an "almost inevitable" rise in energy bills in the autumn, the boss of energy regulator Ofgem has said.

Spikes in wholesale gas prices, which were rising even before Russia's invasion of Ukraine, will be passed on to consumers, Jonathan Brearley said.

He called for the shift to green energy to speed up the move away from gas.

The UK government has previously said the energy price cap would "insulate" customers from gas price rises.

Mr Brearley warned in a speech that the gas price volatility caused by Russia's invasion of Ukraine would lead to higher costs being passed on to consumers.

"While it is too early to predict what the price cap will be in October, a price increase is almost inevitable," he said.

The energy price cap is the maximum amount that suppliers in England, Scotland and Wales can charge customers for each unit of energy.

It is set to rise in April when millions of households will face an increase in average energy bills of nearly £700.

In October, the price cap will be reset, and Ofgem warned last week that average bills could reach £3,000.


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