Record gas prices drive up price cap by £139 – customers encouraged to contact supplier for support and switch to better deal if possible
The energy price cap will increase from 1 October for the 15 million customers it protects. Those on default tariffs paying by direct debit will see an increase of £139 from £1,138 to £1277. Prepayment customers will see an increase of £153 from £1,156 to £1309.
- Support available for customers struggling to pay bills or in vulnerable circumstances with additional help for those on prepayment meters
- Energy suppliers sign up to industry commitment to reach out to those who most need help this winter
- Customers can avoid the increase by shopping around or asking their supplier to put them on a better deal
This increase is driven by a rise of over 50% in energy costs over the last six months with gas prices hitting a record high as the world emerges from lockdown.
Surging global fossil fuel prices are already driving up inflation for consumers, making fixed rate energy tariffs not covered by the price cap, as well as petrol and diesel more expensive.
The price cap offers a safety net for customers who haven’t switched by making sure that suppliers only pass on legitimate costs.
Those on default tariffs are saving an estimated £75-£100 or £1 billion every year as a result.
Any customer in vulnerable circumstances or worried about paying their energy bill should contact their supplier to access the support available.
Customers may be eligible for extra help such as affordable debt repayment plans or payment breaks, emergency credit for prepayment meters and a £140 bill rebate under the Warm Home Discount.
Last week suppliers also signed up to an industry commitment to reach out to those who most need help this winter.
Customers can also shop around to save money before the increase takes effect on 1 October.
Those who don’t want to switch supplier or are unable to can ask their supplier to put them on a better deal.
Click here for the full press release
Original article link: https://www.ofgem.gov.uk/publications/record-gas-prices-drive-price-cap-ps139-customers-encouraged-contact-supplier-support-and-switch-better-deal-if-possible
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