The new price cap is to increase to £3,549 for a typical household, industry regulator Ofgem has confirmed. Analysts have urged consumers to be careful when thinking about switching supplier.
Julian House, managing director of www.myfavouritevouchercodes.co.uk, told Express.co.uk: “While many might be quick to consider switching energy supplier in a bid to combat rising prices, it’s unfortunately hard to say if a change will make any difference at all.
“Switching energy suppliers doesn’t mean you receive different energy – it’s all the same.
‘With the entire market in crisis, there’s nothing tangibly cheaper than the price cap.”
Jonathan Brearley, CEO of Ofgem, said the regulator had been forced by the current international situation to increase the price cap.
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Bosses at some of the UK’s biggest energy providers, including Octopus Energy and Utiltia, have called for a prize cap freeze.
Mr House said: “When discussing whether the UK’s energy price cap should be paused or temporarily scrapped to help people cope with soaring bills, one could certainly steer the conversation towards whether or not the UK government has failed the people they are said to represent by allowing energy companies to go unchecked and, in turn, crippling households across the country with ludicrous energy prices.
“What should be done to help households over the coming months is incredibly simple: protect the working class and stop letting unaccountable corporations make billions and billions of pounds in profits due exclusively to their insatiable greed.”
Martin Lewis, founder of Money Saving Expert, took to his Twitter to share his thoughts on the price cap rise.
Helen Barnes, cost of living expert at Comparethemarket, said that the price cap hike is another blow for struggling families.
She warned: “Today’s increase in the energy price cap from £1,971 to £3,549, based on average usage, follows the £693 increase that came into effect in April, further increasing living costs for those already feeling the pinch.
“This comes at a time where nearly half (46 percent) of households with children at home are already struggling to pay bills.
“During these difficult times, it is important people actively manage all aspects of their finances and look for savings wherever possible. It might be possible to cut back on things such as monthly subscriptions or certain bills, such as motor and home insurance.
“Comparing policies online is one of the best ways to check you are getting value for money. By comparing, motorists could save up to £324 on average by switching from their existing insurance provider, and for those with home insurance there could be savings of up to £148 by switching their buildings and contents insurance.”
She also said that Government support will help people struggling to pay their bills.
The expert said: “The Government’s £400 grant this October will also help all households combat soaring energy prices, with a higher £650 payment available to provide specific support for households on the lowest levels of income.”
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