This article is published in collaboration with Statista
by Martin Armstrong
As described by the UK energy regulator Ofgem, the energy price cap "limits the rates a supplier can charge for their default (electricity and gas) tariffs. These include the standing charge and price for each kWh of electricity and gas." While this backstop does not cap the total bill, which varies depending on how much energy is used, this infographic illustrates how the annual bill for typical dual fuel customers is going through the roof in 2022.
Before the Russian invasion of Ukraine in February turned the European energy supply on its head, the typical household energy consumer was paying a maximum of around £1,200 per year, having remained relatively steady in the preceding periods. The new cap however, to be implemented from October has leapt up to £3,549, set to put immense pressure on bill payers around the country - with even more increases expected in the coming cap adjustments (now taking place on a three-month basis).
Speaking about the latest cap increase, Jonathan Brearley, CEO of Ofgem, said: “We know the massive impact this price cap increase will have on households across Britain and the difficult decisions consumers will now have to make", adding, "The Government support package is delivering help right now, but it’s clear the new Prime Minister will need to act further to tackle the impact of the price rises that are coming in October and next year. We are working with ministers, consumer groups and industry on a set of options for the incoming Prime Minister that will require urgent action. The response will need to match the scale of the crisis we have before us."
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