Another Shock For Energy Prices Coming Soon Revealed in Parliament

12th July 2022

Can energy prices get any higher? Well the answer unfortunately seems to be yes.

The energy price is now higher than at the time of last price cap estimate according to the Ofgem Chief at a parliamentary committee yesterday.

In May, the energy regulator predicted that the price cap would reach £2,800 when it is next changed in October.

Speaking to MPs sitting on the Public Accounts Committee on Monday 11 July 2022 and Jonathan Brearley refused to say if the cap could reach a figure of over £3,200 - as suggested by many independent experts. He said energy prices appear higher than when Ofgem made its estimate.

The energy price cap already ballooned by 54% in April, hitting £1,971 as gas prices soared from last summer.

But since then, gas markets have remained gotten worse. Last week experts at Cornwall Insight predicted that the cap could reach £3,244 per year from October, and then £3,363 per year between January and March.

The price cap is now set every three months and not twice as year as previously. the government help to households is not not going to be enough to protect people from increasing prices. It remains to be seen if government will step in again to increase the assistance especially to low income households.

Russia yesterday cut gas supplies to Germany and this will add more pressure to the gas market and probably send prices even higher worldwide.

The price cap applies to individuals and not to businesses which will mean higher costs and therefore higher prices for many goods including food.