Rise in energy bills likely

HOUSEHOLDS can expect to see a “significant rise” in their bills when the price cap review takes place in February, according to the boss of energy regulator Ofgem.

Chief executive Jonathan Brearley told BBC Radio 4’s Today programme: “We can’t predict everything, and the wholesale market, as we’ve seen, has gone up and down extremely quickly.

“But, looking at the costs that are in the system, we are expecting a significant rise in April.”

However, he said the regulator will not change the cap from its current levels until then.

He added: “This is a really concerning time for customers.

“The price cap is there to protect customers against unfair profits, but legitimate costs do have to be passed through.”

Bills are expected to rocket this winter for consumers whose fixedterm contracts are coming to an end.

And in April next year, the price cap, which applies to around 14million UK households, will rise again.

Experts expect it to increase from the current level of £1,277 per year, already a record, for an average household, to £1,559 per year.

The latest warning from Ofgem comes as Business Secretary Kwasi Kwarteng met leaders from industries that use a lot of energy to speak about the rising costs of gas, amid separate warnings of a steep rise in bills for consumers.

UK gas prices have increased dramatically since the start of the year, and reached an all-time record earlier this week.

It has put pressure on businesses which rely on burning gas to run their manufacturing plants.