There’s ‘no way’ to predict how bills will rise following the price cap review, according to an energy executive.
AN ENERGY DIRECTOR SAYS IT’S “IMPOSSIBLE” TO PREDICT HOW HIGH BILLS WILL BE FOR MILLIONS OF HOUSINGS AFTER THE PRICE CAP REVIEW.
Greg Jackson, CEO of Octopus Energy, said the industry is working to “minimise cost increases” and that his company does not yet know how bills will be paid before February 7.
This is the deadline for Ofgem to set a new ceiling on how much suppliers can charge customers.
“In the energy sector, the UK buys the majority of its energy on the global market, and we’ve had to pay around £20 billion more than usual this year,” Mr Jackson said.
So the UK will have to pay that money in some way.”
Because of Europe’s record wholesale gas prices, experts predict that average annual bills in the UK will rise from £1,277 to more than £2,000 when the cap takes effect in April.
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Mr Jackson stated that talks between suppliers and the government must find a way to avoid global gas levies being passed on to consumers directly.
He suggested that the industry’s goal should be to bring costs down for millions of consumers who are facing “the year of the squeeze.”
“We have to recognize that every sector is asking the Treasury for help as a result of the pandemic, and there isn’t an infinite supply of money,” Mr Jackson added.
“We’re now so focused on driving costs down for customers that the entire sector is losing money.”
That is an area in which we, as businesses, can make a significant contribution.”
Department of Business officials have been meeting with suppliers to prevent more businesses from going bankrupt.
Last year, nearly 30 people were killed as a result of record wholesale energy prices.