Ofgem has confirmed that the power value cap can be up to date quarterly, fairly than each six months, additionally warning that households face a “very challenging winter”.
The power regulator stated that having the ability to replace the power value cap extra typically “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 signifies that the subsequent value cap degree can be revealed on the finish of August, when one other large rise is probably going.
Ofgem chief government Jonathan Brearley blamed Russia’s invasion of Ukraine for rocketing wholesale power costs.
He stated: “I do know this example is deeply worrying for many individuals. As a results of Russia’s actions, the volatility within the power markets we skilled final winter has lasted for much longer, with a lot increased costs than ever earlier than.
“And that means the cost of supplying electricity and gas to homes has increased considerably.”
The UK imports solely about 4% of its gasoline from Russia, however decrease Russian provide to Europe signifies that competitors is intense, consequently pushing costs increased.
Source: information.sky.com”