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SPF RESPONSE TO OFGEM ANNOUNCING AN INCREASE OF 4% ON THE ENERGY PRICE CAP ON 1ST OCTOBER 2026.
Energy prices are set to rise again in October.
Ofgem, announcing an increase of 4% on the energy price cap from 1st October, has attributed this to higher wholesale gas prices due to the Iran war. A household using a typical amount of gas and electricity will pay £60 a year more.
Though the government claims its cut to VAT on electricity bills will save households £45, this still means that those most vulnerable, who already face proportionately higher bills and unfair standing charges, will as usual bear the brunt at a time, particularly in Scotland, when the need to keep warm is a priority for older people.
At the same time Ofgem is consulting on relaxing the regulations for new suppliers to enter the field in the interests of so-called competition. This is a policy doomed to failure, based on unproven, and indeed clearly counter-productive claims about the free market where consumers have in fact no real choice. Since 2016, no fewer than 51 energy supply companies have gone bust affecting more than 6 million customers (https://www.businessenergyuk.com/failed-energy-companies/). Vulnerable consumers are sometimes persuaded by attractive opening offers to change to new entrant suppliers, only to face additional stress and worry when these all too often collapse. The SPF urges Ofgem to address the needs of vulnerable energy users rather than bolstering the profits of the already cash rich energy giants.
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