STORY
Households are set to face higher energy bills from July after Ofgem raised the domestic energy price cap by 13%. The regulator said the increase reflected higher wholesale gas prices linked to the continuing conflict in the Middle East, with the average annual bill rising from £1,641 to £1,862.
The increase will affect millions of households on standard variable tariffs and has placed further pressure on the Government over the cost of living. Energy Secretary Ed Miliband (in photo) said the rise was “deeply unwelcome” and argued that ministers were focused on easing the burden on households.
Consumer groups urged targeted support for those on low incomes and households already struggling with debt. Analysts warned that bills could rise again in October if disruption to energy markets continues, making the price cap decision another difficult economic moment for ministers trying to show that living standards are improving.