Energy Secretary Ed Miliband has issued Ofgem an ‘urgent’ warning as energy bills set to rise again (for the third time) in April - with forecasts showing the typical energy bill could soon rise by over £100 a year.
The exact figure between the forecasts do vary, but most key analysts agree that they will be increasing, with firms such as EDF and British Gas predicting an increase somewhere between 5% - 7%, which is hitting Labour's pledge to curb the cost of living.
Although the Ofgem price cap does not impact business energy, the reasoning behind the increase in prices for business energy is still the same.
Increased volatility in the global gas market is said to be the driving factor behind the rises, with the transit deal allowing gas to flow to Europe from Russia via Ukraine recently ending too.
Other factors include the increase in cold weather recently and the lack of gas storage in Britain and Europe amongst others, has meant that this increased demand has come at a cost recently.
This had led all led to the energy secretary taking the step to write an urgent letter to Ofgem, asking the regulator to move faster to protect consumers against coming price rises.
Source: You can read the full article online at The Independent.
The Honest Opinion
"As most British business owners will know the Ofgem price cap does not impact business energy. On the contrary business energy effects, the price cap. This is because the price cap always reflects what has happened in the live business market months previous. The increase that has been announced for April is showing that the market is increasing and could continue to do so throughout the year. At Honest Utility Group we prepare our clients and allow them to secure before such increases impact their expenditure."
- Arran Quinn, Corporate Account Manager and Energy Consultant at Honest Utility Group
At Honest Utility Group our team will look help you secure the best available rates and terms on your energy contracts. You can reach our team by phone on 0191 7208 238 or by email at info@honestltd.co.uk
