Ofgem has confirmed that the energy price cap will be updated quarterly, rather than every six months, also warning that households face a “very challenging winter”.
The energy regulator said that being able to update the energy price cap more often “will go some way to provide the stability needed in the energy market, reducing the risk of further large-scale supplier failures which cause huge disruption and push up costs for consumers”.
“It is not in anyone’s interests for more suppliers to fail and exit the market”, it added.
This means that the next price cap level will be published at the end of August, when another massive rise is likely.
The news comes just days after energy consultancy Cornwall Insight forecast the energy price cap would remain above £3,500 a year throughout most of 2023 – a massive rise from April this year when it was hiked 50% to £1,971.
Read more:
What is the energy price cap and why are bills rising so sharply?
Ofgem chief executive Jonathan Brearley blamed Russia’s invasion of Ukraine for rocketing wholesale energy prices.
Next says warm weather and demand for formal clothing helped boost sales
Cost of living: Campaign for energy bill strike gathers steam as winter shock looms
Cost of living live: Bank of England expected to announce largest interest rate rise in almost 30 years
He said: “I know this situation is deeply worrying for many people. As a result of Russia’s actions, the volatility in the energy markets we experienced last winter has lasted much longer, with much higher prices than ever before.
“And that means the cost of supplying electricity and gas to homes has increased considerably.”
The UK imports only about 4% of its gas from Russia, but lower Russian supply to Europe means that competition is intense, consequently pushing prices higher.
