The head of the energy regulator has warned of a “difficult” winter ahead as he raised concerns that “people are going to struggle” without help.
Ofgem’s new chief executive Tim Jarvis told the Energy UK conference in London: “We can all see what’s happening to wholesale prices as a result of what’s going on in the Middle East, and we’ve seen the predictions for January.
“It’s going to be a difficult winter.”
He went on: “Decisions on how to help those who are most likely to struggle quite rightly lie with Government and, like many of you, I will be waiting to see what is announced in the Budget.
“I don’t think it’s for me to make Government’s already difficult job even more difficult by making unreasonable demands.
“But I think I share the concerns of many of you that people are going to struggle this winter without some help, and the earlier we can get decisions and we can work with the sector to help implement them the better.”
A 4% hike to Ofgem’s energy price cap took effect from October 1 as forecasters warned household bills could soar by almost another £300 from January.
Campaigners have urged the Government to make plans now to support all households with energy costs this winter because of the severity of forecast bill hikes.
A 4% hike to Ofgem’s energy price cap took effect from October 1 as forecasters warned household bills could soar by almost another £300 from January (Yui Mok/PA)
PA Archive
Cornwall Insight’s latest forecast predicts the price cap will rise by a further 16% to £1,999 a year on January 1, up by £276 on the level between October and December and the biggest rise since January 2023.
The End Fuel Poverty Coalition has urged ministers to prepare an “emergency heat tariff” to cap the cost of heating this winter, with gas prices already rising 27% year on year.
A poll for Uswitch suggests some 1.7 million households will not turn on their heating this winter amid fears of soaring bills and efforts to save money.
While 5.7% of households plan to leave the heating switched off, 52% – or more than 15 million homes – say they are worried about being cold this winter, and 40% only plan to turn on the heating if they get too cold, the survey found.