Ofgem draws up new energy plan with spiralling wholesale prices set to send bills soaring
Regulator Ofgem has laid out plans which could ease the expected surge in energy bills.
Households expect a big hike in April as suppliers raise prices in line with soaring wholesale costs after changes to an industry price cap.
Around 25 UK energy suppliers have collapsed since August as prices have soared. As a result, millions of households and businesses have been passed to new ‘suppliers of last resort’.
Energy costs: Households expect a big bills hike in April as suppliers raise prices in line with soaring wholesale costs after changes to an industry price cap
Ofgem is consulting on spreading the cost of bailing out customers of failed suppliers, potentially over several years.
It said this could help to reduce the bills and perhaps, according to a report, spare customers a levy of up to £100.
It said: ‘Ofgem’s safety net has protected more than 4m customers, making sure they have a supplier and household credit balances are honoured.
This comes at a cost, which we always seek to minimise.
We, with government and industry, are considering ways to mitigate the impact.’