Suppliers warn bills to rise

PROVIDERS have warned energy bills are set to rise further in 2022.

Speaking to the Financial Times, Good Energy, EDF and trade body Energy UK said the Government needs to intervene after the cost of wholesale gas rose by more than 500% in less than a year.

Emma Pinchbeck, chief executive of Energy UK. She told the Financial Times: “Other treasuries in Europe have already responded to the crisis, but in the UK, the energy sector is still asking if the Chancellor knows that energy bills going up by over 50% in the new year is a problem for ordinary people, businesses and the economy.

Nigel Pocklington, chief executive of Good Energy – a small renewable energy firm, said the UK is facing a national crisis after recent rising prices created an extremely difficult operating environment for every business in the industry.

EDF Energy has also warned the Government must act. More than two dozen suppliers have gone bust since the start of September. Suppliers said the cost will be passed on to households, putting further pressure on rising bills.

Many in the energy industry blame part of the problem on the energy price cap. This is set every six months and, as gas prices have soared in recent months, it has forced suppliers to provide energy to households at losses.

The industry regulator, Ofgem, has proposed a series of short and long-term solutions to the issues the price cap causes in extreme circumstances. These include reviewing the price cap every three months, or overhauling it in favour of a six-month fixed tariff.