Uswitch comments on Ofgem's new price cap announcement

Richard Neudegg, director of regulation at Uswitch.com, comments: “Here is the signal that the summer holidays are over. After seemingly endless predictions, the true magnitude of the October energy price cap is now clear. 

“Ofgem has rubber-stamped the letters from suppliers that will now start landing on millions of doorsteps informing customers of exactly how much they’ll need to pay for their energy as we go into winter. 

“Households will face average monthly charges of £362 based on expected usage[1] - almost three times more than the same period in 2021. 

“Even after the £66 monthly discount currently on the table from the Government, families will need to find on average an extra £169 per month compared to last year, when many household budgets are already maxed out. 

“The energy crisis we face this winter must never be allowed to happen again. This is a failure of the wholesale market and, until that is resolved, we won’t have a long-term solution. 

“The Government has made it clear that it will not intervene further until a new Prime Minister is confirmed. As concerning as this is, there does seem to be consensus that more support will be made available, but it remains to be seen if it will be enough.   

“Until the Government acts, which we expect will be in the coming weeks, consumers are being held in a cost-of-living limbo.”

Notes to editors

1. Based on Ofgem price cap inferred standing charges and unit rates with usage profile expected over October, November and December.