Ofgem hikes bills for vulnerable customers again

THE energy regulator has raised bills for more than five million people for the second time since it began intervening in the market a little over year ago.

Ofgem blamed rising prices on the global energy markets for the £47-a-year blow, which will hit the country’s most vulnerable homes from October. The rise follows a £58 rise announced in February.

The so-called “safeguard tariff ” for gas and power was brought in to protect consumers against sudden, “unfair” price hikes but offers no guarantee that prices will not still rise.

The dual-fuel safeguard tariff, to be set at £1,136, is £159 higher than the cheapest prepayment tariff on the market and is only slightly lower than the £1,145 average price offered by the Big Six energy suppliers for a standard variable tariff. The cap is also well above fixed deals offered by the Big Six and challenger brands alike.

Dermot Nolan, the Ofgem boss, insisted the new cap, which will extend to another 11m homes this winter, means customers are “better off ” and are “no longer overcharged for their energy”.

He added: “Customers can be confident that this increase is justified and that their energy bill reflects the real cost of supplying gas and electricity.

“There are also better deals on the market for those who want to save even more money by switching.”