The UK’s energy price cap is expected to rise in October to around £2,800, Ofgem’s chief executive says.
The cap which applies until 31 September is currently £1,971 a year, which was itself a 54% or £693 rise from the previous cap six months earlier.
Ofgem chief executive Jonathan Brearley has told the Business, Energy and Industrial Strategy Committee that in October it will be “in the region of £2,800”.
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He said: “I’m afraid to say conditions have worsened in the global gas market, with Russia’s invasion of Ukraine.
“Gas prices are higher and highly volatile.
“At times they have now reached over 10 times their normal level.
“I know this is a very distressing time for customers but I do need to be clear with this committee, with customers, and with the government about the likely price implications for October.
“Therefore, later today, I’ll be writing to the chancellor to give him our latest estimate of the price cap uplift.
“This is uncertain, we’re only part-way through the price cap window, but we’re expecting a price cap in October in the region of £2,800.”
He added: “Our future scenarios when we look beyond that, we’re really managing between two extreme versions of events – one where the price falls back down to where it was before, for example if we did see peace in Ukraine, and one where prices could go even further if we were to see, for example, a disruptive interruption of gas from Russia.”
Mr Brearley described the current situation as “genuinely a once-in-a-generation event not seen since the oil crisis of the 1970s” but this will be little comfort to people in the UK already dealing with rises in food, fuel, and taxes.