Suppliers pile pressure on government over energy bills

The government should take immediate action to help those struggling with energy bills this winter, the suppliers’ trade body has said.

Energy UK said domestic gas prices, which rose on Thursday, and forecasts of steep rises in January meant inaction would lead to a longer-term, more costly and deeper crisis.

Figures revealed by the BBC earlier this week showed forecasters predicting a 16% rise in domestic energy prices in the new year for 20 million households on variable tariffs affected by regulator Ofgem’s price cap.

Prime Minister Andy Burnham said the government was considering any measure that took the pressure off.

Households in England, Scotland and Wales on variable energy tariffs set by Ofgem’s price cap, which puts a maximum price on each unit of gas and electricity, were hit with a 4% price increase at the start of October.

That is the equivalent of about £60 per year – or £5 per month – taking an annual bill to £1,723 for the typical household using both electricity and gas and paying by direct debit if this level was sustained for a year.

But forecasts show a far greater increase is possible for bills in January. Consultancy Cornwall Insight said its latest forecast suggested the same typical annual bill would rise to £1,999.