Politics · United Kingdom · 4 hrs ago
Ofgem chief warns households may struggle with energy bills this winter
Ofgem chief executive Tim Jarvis warned of a difficult winter for households in the UK, citing rising wholesale energy prices linked to events in the Middle East.
The energy price cap rose 4% on October 1, and Cornwall Insight forecasts another 16% increase from January 1, to £1,999 a year.
That would add £276 to the cap compared with its October-to-December level, though it is a forecast.
Jarvis said people may struggle without help and said the Government should decide what support to provide.
He is waiting for announcements in the Budget and said earlier decisions would help the energy sector put support in place.
Campaigners have urged ministers to prepare help with heating costs, including a proposed emergency heat tariff.
A survey found many households fear being cold, with 1.7 million saying they will not turn on their heating this winter.
Ofgem chief executive Tim Jarvis warned that households may struggle with energy bills this winter without help.
He said wholesale prices were affected by events in the Middle East and described the winter ahead as difficult.
A forecast cited by the Evening Standard predicts Ofgem’s price cap will rise by 16% to £1,999 a year on January 1.
Jarvis said decisions on help for people most likely to struggle were for the Government, and he was waiting for the Budget announcement.
A survey for Uswitch found that 52% of households were worried about being cold this winter.
- Who
- Ofgem chief executive Tim Jarvis warned that households may struggle.
- What
- He said people may need help with energy bills this winter.
- When
- He spoke ahead of winter; the forecast price-cap increase is due on January 1.
- Where
- Jarvis spoke at the Energy UK conference in London.
- Why
- Wholesale prices have risen amid events in the Middle East, and forecasts indicate higher household bills.
This story does not have two clearly opposing sides.
A 4% increase to Ofgem’s energy price cap took effect.
Tim Jarvis warned at the Energy UK conference in London that households may struggle this winter without help.
Cornwall Insight forecasts that the price cap will rise by 16% to £1,999 a year.
- Ofgem chief executive
- Tim Jarvis
- Current price-cap increase
- 4%, effective October 1
- Forecast price cap
- £1,999 a year from January 1
- Forecast increase
- 16%, or £276, according to Cornwall Insight
- Households worried about cold
- 52%, or more than 15 million homes, according to a Uswitch poll
What people are saying
It’s going to be a difficult winter.
people are going to struggle this winter without some help
Decisions on how to help those who are most likely to struggle quite rightly lie with Government