Energy price cap: Millions of households face higher gas and electricity bills

05/10/2021 10:02
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A squeeze on household finances will become more acute as a new, higher energy price cap takes effect. 

Those on standard tariffs, with typical household levels of energy use, will see bills go up by £139 to £1,277 a year, but the more energy a household uses, the higher their bill will be.

Prepayment meter customers with average energy use will see a £153 increase.

The cap has come under the spotlight owing to the crisis among suppliers, which has seen nine firms fold.

The cap limits how much providers can raise prices. Even so, the current increase is the biggest jump, to the highest amount, seen since the backstop was introduced in January 2019.

It represents a 12% rise in energy prices at a time of the year when, charities point out, people are about to use more heating and lighting during colder, darker days. It also coincides with other price rises hitting family budgets and the withdrawal of Covid support schemes, although the government has promised to continue financial help for the poorest households.

Read the full story here.

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