Responding to Ofgem’s announcement on the new price cap level (coming into force from October) Energy UK’s Deputy Director, Policy (Customers), Ned Hammond said:
“A rise in the price cap is never welcome news – especially as this will come into force in time for winter.
“While it is usually movements in wholesale energy costs that affect the price cap’s level, on this occasion one of the factors behind the rise is the expansion of the Warm Home Discount to an extra 2.7 million households.
“At a time when customer debt is at a record £4 billion plus and many are still struggling with bills hundreds of pounds higher than at the start of 2022, the extra support this will provide is much needed.
“However, the Government does need to look at a fairer way of targeting support. The Warm Home Discount expansion is a welcome interim measure but developing better targeting is the only long-term solution to help those that need it most.
“This must be accompanied by a relentless effort to reduce energy bills at source. As we continue to highlight, there are ways to bring down bills while still enhancing support for those customers most in need*.”
*For more details on Energy UK’s proposals to cut bills read: “How to Cut Bills: A crisis that can’t be ignored.” Energy UK has also published this briefing explaining in more detail the factors behind today’s price cap decision.