Ofgem has announced that its price cap will rise by 4% or £60 per year to £1,723 from October 1.
Prime Minister Andy Burnham has said rising energy bills are “difficult” for people after Ofgem raised its price cap by 4% to a three-year high and analysts forecast a further 9% hike from January.
Speaking to reporters from a supermarket in London, the Prime Minister said: “It’s difficult for people and I recognise that.
“But it’s why, within days of taking office, I announced that we would remove VAT off electricity bills to give people that little bit of help.
“That kicks in from October.
“We know the price cap will have an impact, but it is what we can do right now.
“And we’ll continue to look as we go forward at how we get energy prices down in the long term, and that’s what we need to do too.”
The regulator said its price cap will rise by £60 per year – or £5 per month – to £1,723 for the average household using both electricity and gas if this level was sustained for a year.
This increase reflected higher wholesale gas prices as a result of the ongoing conflict in the Middle East, with volatile global markets remaining the dominant driver of price changes.
In a further blow for households, analysts Cornwall Insight released their latest forecast on Wednesday for a further 9% increase to the price cap in the New Year.
This would put an average January bill up to £1,872 a year, £149 higher than October’s £1,723.
