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Families face an extra £800 energy bill rise in October, former NPower boss warns
1 April 2022, 08:20 | Updated: 1 April 2022, 08:22
Energy bills could increase by another £800 when the price cap is reset in October, the former CEO of NPower has warned.
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Paul Massara told LBC's Nick Ferrari at Breakfast it's a "very concerning time" for households facing soaring energy bills and a cost of living crisis, as he issued a stark warning that bills will keep creeping up.
The former NPower boss told Nick: "The reality is that the price cap has protected people through the winter period, but now it has come back and it's biting.
"A £700 to £2,000 rise is incredibly large and for those people most in need, those people most vulnerable, who are trying to budget day by day essentially, this is going to be a massive shock."
He added: "And what's worse is that the forward look seems to be that in October when the cap is reset again we could be anywhere between another £400 to £800."
He stressed that the Government "need to do more", adding what they have done "isn't well targeted enough".
"Let's be clear, the £200 rebate what they call it, is a loan," he explained.
"That loan means your bill is slightly lower today but has to be paid off over the next five years."
He added that those people living "day-to-day" will be worst affected.
The energy price cap rose by 54% on Friday morning, meaning households face much higher costs for heating and powering their homes.
This is an increase by £693, as Ofgem, the regulator for the energy sector, allowed bills to climb to £1,791.
Thursday saw a number of energy websites crash as millions of people tried to submit their meter readings to avoid them being wrongly estimated for their next bill.
E.ON, British Gas and EDF Energy's websites were affected by "unprecedented demand".
The squeeze comes amid soaring inflation, compounded by the Russian invasion of Ukraine.
The Government will point to a package of support announced by Chancellor Rishi Sunak but already members of his own party have suggested he will need to announce more help.
Speaking to LBC on Wednesday ahead of the new price cap rise, money saving expert Martin Lewis said the rise is "catastrophic".
"I didn't think it was going to be anywhere near as bad as this," he admitted.
"I thought it was just going to be bad, I didn't think it would be catastrophic."