Ofgem has issued an urgent warning ahead of the energy price cap increase in October.
The energy regulator spoke out after a growing number of people have joined a movement pledging not to pay their bills amid soaring prices. The Don't Pay UK campaign has urged households to protest by not paying their bills from October 1 if the UK Government does not intervene ahead of the price cap increase.
Ofgem confirmed that it would now review its price cap every three months. Current predictions estimate that the price cap will increase from £1,971 to £3,523 in October, and then again to £4,210 in January.
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As reported by Yorkshire Live, Don't Pay UK has called on the public to protest, even though it could result in them being disconnected. The campaign is attempting to get one million energy customers to pledge not to pay their bills in an effort to force companies to lower their prices.
As stated on the campaign's website: "It's simple: we are demanding a reduction of energy bills to an affordable level. Our leverage is that we will gather a million people to pledge not to pay if the government goes ahead with another massive hike on October 1st.
"Mass non-payment is not a new idea, it happened in the UK in the late 80s and 90s, when more than 17 million people refused to pay the Poll Tax – helping bring down the government and reversing its harshest measures. Even if a fraction of those of us who are paying by direct debit stop our payments, it will be enough to put energy companies in serious trouble, and they know this."
However, CEO of Ofgem, Jonathan Brearley has issued a warning to anybody considering not paying their energy bills. Speaking on BBC Radio 4's Today show, he acknowledged that households were "extremely worried" about affording their bills, but urged people not to join the campaign.
He said: "First of all, it will drive up costs for everyone across the board. And secondly, if you are facing difficulty in paying your bill, the best thing you can do is get in touch with your energy company."
Financial campaigner Jack Monroe responded: "Based on the latest quarterly reports from the energy companies, even if the entire 22% of people in poverty in the UK didn’t pay their bills, the big companies would STILL turn over a hefty profit. Unconscionable extortion. Wonder which MPs have shares in the energy sector?"
Citizens Advice has also advised those thinking about signing up for the campaign that they could be forced to have a pre-payment meter in response, or even be disconnected.
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