As energy prices rise in the UK, millions of people might save £250 by switching suppliers.
ENERGY BILLS FOR 15 MILLION HOUSINGS WILL INCREASE BY AT LEAST £139 FROM OCTOBER, according to regulator Ofgem, due to a spike in wholesale energy costs.
With a potential increase of up to £150 per year, householders are being urged to switch to lower-cost energy bills as soon as possible. If they don’t, they may be forced to pay the market’s highest pricing for the next three years.
Energy customers are being urged to switch to less expensive plans by lawmakers and experts.
This comes after the energy regulator, Ofgem, predicted that rates might rise by at least £139 per year, and possibly as much as £150.
From October, fifteen million families throughout the UK may experience an increase in their bills.
Ofgem Chief Executive Jonathan Brearley stated in a blog post last week that the increase in wholesale fuel costs would contribute to the new energy price cap.
The cap, which is reviewed by Ofgem twice a year, will be published today, August 6.
The current energy price cap is £1,138, however due to rising fuel prices, this is projected to increase.
A £150 increase would represent a 13% increase.
This is more than five times the most recent monthly inflation rate of 2.4 percent, which was recorded in June.
This isn’t the first time energy prices have risen this year; in April, households saw their costs rise by £96.
Experts have weighed in on the latest development, with some predicting that it will be a major “blow” to millions of British families.
“The price cap increase is the ultimate triple punch for houses across the country,” said Justina Miltienyte, an energy policy specialist at Uswitch.com.
“Not only is this the first time Ofgem has lifted the cap twice in a year, but it is also the first time it has gone up before winter, and it is the largest rise since the quota was initially implemented in 2019.”
Energy prices will be £235 higher in October than they were a year ago, according to Justina.
Customers should switch energy providers now to avoid the price hike, she advised.
“Now is the time to act to prevent being stung by this price increase and to gain protection from future market volatility,” the energy policy expert said.
“Checking out what bargains are available and switching to a cheaper fixed tariff only takes a few minutes.
“Changing to the cheapest fixed deal on the market today may save consumers £241.”Brinkwire Summary News”.