
I have posted a couple of related noms over the last 12 months concerning the price cap, Ofgem and the hideous rise in domestic energy prices.
The price cap was increased to something like 54% in April 2022 for people on SVRs. And there were warnings from the regulator, Ofgem that the cap would rise again come October to something like 30 or 40%
Well now it seems that estimate is way off and that it could well be hovering around the mid 60s. Which in effect means gas and electric bills will have gone up by over 100% come October – just in time for a hard cold winter!
This translates into something like £3500 for a “typical” household compared to around £1650 just a year ago.
Ofgem has also reduced the Price Cap review from 6 months to 3. This means we can expect more increases over the next 12 months at least.
If you’ve just started a Fixed Rate tariff then you’ll be protected for the duration of the tariff (assuming your energy provider doesn’t go pop!) But given that fixed tariffs are becoming harder to find it will mean people being dumped on SVRs when their fixed ends, and its the SVRs that will feel the full effect of the price cap increase.
There is plenty of financial support for the usual groups and rightly so in most cases. But as per usual if you’re in employment but on a lowish wage that doesn’t attract any extra top-ups then you’re going to be hit hard as your disposable and discretionary spending becomes even more constricted especially with “real world” inflation well over 10% in some instances.
There appears to be no end in sight for 2022/2023. And even when the war ends in Ukraine and fuel supply meets demand I doubt if the price cap will fall by the same leaps and bounds as when they went up!
But its okay because our wonderful eco-green policies will make the world a happier place even though none of them are proven, sustainable or value for money (especially when one considers how heavily subsidised they are by the same people struggling to pay their fuel bills!)
Nominated by: Technocunt



