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Ofgem chief warns price cap hike 'could be more' than predicted £800
20 June 2022, 09:39 | Updated: 20 June 2022, 11:46
The predicted energy price rise coming in October could well be more than the forecasted 40-plus percent, the head of Ofgem tells Nick Ferrari.
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The energy regulator has announced plans for a shake-up in how providers keep the credit of their customers, as the cost of living crisis deepens.
Ofgem CEO Jonathan Brearley spoke to Nick Ferrari about the measure, and this Autumn's energy price cap.
After dozens of energy providers went bust during 2021, Mr Brearley began by assuring listeners that Ofgem are "tightening up the rules now to make sure this kind of thing doesn't happen again."
Nick reminded the Ofgem chief of his comments to MPs that the energy price cap to rise by more than £800. "Are we still working to those figures?" He wondered.
Mr Brearley regretted to tell Nick that Ofgem are still expecting such a colossal rise.
"I know how hard it's going to be for all of us to manage through those sort of changes in price."
He went on: "The market is changing. It's changing day by day. That's not a fixed number and it may well change before we get to October."
Nick pushed Mr Brearley, asking whether the price cap could rise yet again before October.
"It could go up, it could go down", the Ofgem chief declared.
"The important thing is this price cap will ensure people only pay a fair price for their energy", he said, adding that "we're not going back to the bad old days" of huge margins for energy companies thanks to the regulator's clampdown.
Mr Brearley ended by telling Nick that "one of the biggest factors" driving price is the war between Russia and Ukraine and that could have "sustained impact on the market" well into the coming years.