Analysts have advised annual payments may soar previous £2,000 for the primary time
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Brits ought to count on a “significant” hike in vitality prices in April when the cap on family payments is reviewed, the business watchdog has warned.
Ofgem boss Jonathan Brearley admitted it was a worrying time for shoppers, who additionally face a hike in nationwide insurance coverage contributions subsequent 12 months.
The current £1,227 vitality worth cap can be reviewed in April, which protects households from sudden hikes of their payments.
Analysts have advised annual payments may soar previous £2,000 for the primary time, with will increase of as much as £800 subsequent 12 months.
Mr Brearley informed the Today programme: “Unfortunately we have now seen a unprecedented rise within the fuel worth.
“It’s hard to tell how much but we do expect bills to rise in future.”
Asked if the value cap would rise, he mentioned: “Yes that is the expectation. We can’t predict everything, as we have seen the wholesale market has gone up and down extremely quickly.
“We cannot predict totally what that can be however wanting on the prices which might be within the system, we expect a major rise in April.”
Mr Brearley said the current cap would remain in place until April, with no plans to raise it before then.
Business Secretary Kwasi Kwarteng will hold talks on Friday with the representatives of energy intensive industries, such as steel and chemicals, to discuss the wholesale gas crisis.
It comes after a top White House official has accused Russia of using gas supplies as a “weapon” as the UK grapples with an energy price spike.
US President Joe Biden’s national security adviser Jake Sullivan warned the Kremlin not to exploit spiralling costs as “coercion”.
“The United States has a real concern that, for a variety of reasons, supply is not keeping up with recovering demand,” he said.
Russia is a major natural gas supplier to Europe, and its energy giant Gazprom is now at the centre of a dispute over whether it could do more to ease prices in the spot market.
Asked if Russia was holding back energy as leverage, Mr Sullivan said: “Russia has a historical past of utilizing vitality as a device of coercion, as a political weapon.”
Transport Secretary Grant Shapps said he didn’t know to what extent there could be “Russian intervention”.
He told Times Radio: “There’s a large world uplift in costs and, because the world has woken up from, you recognize, being in a slumber of coronavirus, as with plenty of commodities the value has gone up.
“I don’t know the extent to which there’s sort of Russian intervention. What I do know is, fortunately, 50% of our production is domestic. The vast majority of the rest is from Norway.
“I believe I’m proper in saying that, of the fuel, solely about 3% is from Russia, so we’re circuitously impacted apart from, after all, the worldwide fuel worth does have an effect general.”