Oxfordshire MP anger as households hit by energy price cap rise

Energy regulator Ofgem announced on Wednesday, May 27 that there would be a 13 per cent increase of the energy price cap.

In a speech to Parliament on Tuesday, the Liberal Democrat politician urged the Government to provide targeted support to vulnerable, low-income households, which will be hit the hardest.

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Mr Glover said: “The energy price cap increase is estimated to cost each household an extra £18 every month.

“That is the price of a regular essential food shop at a discount store

“Now I note the measures the minister says the Government is taking but in addition will the Government urgently bring a social tariff for vulnerable low income households?”

In response to Mr Glover, Martin McCluskey, the parliamentary under-secretary of state for energy security and net zero, said: “Obviously from the Government’s point of view we do not want anyone to be making the choice between heating and eating.

“That’s why across the Government, we are working on a data sprint to work out how we can use household income data to make sure we are targeting support at the right people.”

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Vulnerable households to be targeted as energy price cap increases (Image: PA)

The energy regulator revealed that this price cap would start on Wednesday, July 1 to Wednesday, September 30.

The price cap refers to the default tariff applied when a customer has not signed for a fixed-rate tariff.

It sets a maximum rate per unit and standing charge that can be billed to customers for their energy use. 

This increase is a result of higher wholesale gas prices, caused by the ongoing conflict in the Middle East.

However, prices remain well below the height of the energy crisis in 2022 when the government stepped in to cap bills at £2,500.  

Currently, 60 per cent of accounts aren’t fixed tariffs and will be affected by this price rise.

The current price cap for a typical household paying by direct debit for gas and electricity is £1,641.

Announcing the increase, Tim Jarvis, Ofgem CEO, said:  “Today’s price change reflects continued volatility in global energy markets.

“This means higher wholesale gas prices, driven by ongoing conflict in the Middle East, is impacting the price we pay for energy. 

“We understand many will be concerned about rising prices.

“While energy use typically falls over the summer months, there are still practical steps households can take to manage costs, including exploring fixed tariffs or changing their payment method.

“Smart meter customers can also take advantage of half price or cheap electricity at the weekends.”