A higher price cap on energy bills takes effect today, which could see the average household energy bill increase by £139 per year. It is thought around 15 million homes are affected across England, Scotland and Wales.
The price cap, which is set by the energy regulator Ofgem, is a maximum amount energy suppliers can charge customers, and is reviewed twice per year. From October 1st, this will increase by effectively 12%.
Energy suppliers are expected to increase their prices to the maximum allowed, as many are affected by the significant increase in gas prices this year, with many struggling to provide energy cost-effectively and as a result going out of business.
It’s bad timing, just in time for winter where many will start using more energy to heat their homes and struggling to pay their bills due to lasting coronavirus effects on their finances.
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