A massive billing shake-up will cause energy bills to rise every three months, as claimed by Ofgem.
Ofgem, the energy regulators for Great Britain, review the energy price cap as part of their work, every six months, The Sun reports. The price cap limits how much supplies can charge customers, otherwise known as 'capping' the price.
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The regulators will now review the price cap twice as often now, as part of a big rule change by Ofgem. This will turn into a financial blow for many households, as more frequent updates to the upper limit of what suppliers can charge people can turn into higher energy bills.
Currently, the price cap is reviewed in April and October, but it looks to be doubling in the coming months, to four times in a year. The price cap is currently sitting at £1,971 and impacts 24 million customers across the UK.
Ofgem admitted that customers "face a very challenging winter ahead". Chief executive Jonathan Brearley has said that the situation is "deeply worrying", however they plan to check more frequently so customers are "only paying the real cost of their energy".
He added: "We will keep working closely with the Government, consumer groups, and with energy companies on what further support can be provided to help with these higher prices." Ofgem said more frequent reviews would help reflect the most up-to-date and accurate wholesale prices.
Ofgem also said that "if prices were to fall from their current highs, then that would be passed on to customers more quickly, reducing their bills." However, if prices rise further then these increases will be put into place a lot quicker.
Experts from Cornwall Insight are predicting energy bills could rise to £3,358 on average from October when the price cap is expected to go up. Ofgem is expected to announce what October's price cap will be on August 26.
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