The limit on energy prices in the UK is expected to rise in October to around £ 2,800, says Ofgem’s chief executive.

The limit, which runs until Sept. 31, is currently £ 1971 a year, which in itself was 54% or £ 693 more than the previous limit six months earlier.

Ofgem CEO Jonathan Brirley told the Committee on Business, Energy and Industrial Strategy that in October he would be “around £ 2,800”.

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He said: “I am afraid to say that conditions on the world gas market have deteriorated with the Russian invasion of Ukraine.

“Gas prices are higher and very volatile.

“Sometimes they reached more than 10 times their normal level.

“I know this is a very difficult time for customers, but I need to be clear with this committee, with customers and with the government about the likely effects on prices in October.

“So today later I will write to the Chancellor to give him our latest assessment of the price increase.

“It’s uncertain, we’ve only partially gone through the price cap window, but we expect the October price to be around £ 2,800.”

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He added: “Our future scenarios, if we look beyond this, we are really guided between two extreme versions of events – one when the price falls to where it was before – for example, if we see peace in Ukraine – and one where prices we could go even further if we saw, for example, gas outages from Russia. “

Mr Bryrley described the current situation as “a real event in a generation not seen since the oil crisis of the 1970s”, but it will be of little consolation to people in the UK who are already dealing with rising food, fuel and taxes. .

It also comes days after the energy regulator said the price cap – a mechanism that sets gas and electricity bills for 22 million households – could soon be revised every three months instead of every six months.

Shadow Chancellor Rachel Reeves wrote on Twitter: “This will cause a huge deal of concern to families already facing high bills.

“How many more alarm bells do conservatives need before they take action?

“We need an emergency budget now with an unexpected income tax on oil and gas producers to lower bills.”

Sky Economic Editor Ed Conway said: “The Chancellor has already intervened – in some families you will see these bills reduced by around £ 350 – but even that will still be at the highest level we have seen since 1950s.

“So Rishi Sunak is under a lot of pressure to do more, and I understand that the Treasury is looking at it, they are ready to do something.

“But as for when they make this announcement, how much and what goes with it, whether there will be excess income taxes from oil and gas producers – we will have to see.

“They’re thinking about all of this at the moment and are potentially trying to introduce something, maybe in June, maybe in July.

“However, you’re talking about increasing the amount we spend on these things that you just can’t avoid spending, and it will exacerbate the cost of living crisis.”

https://news.sky.com/story/cost-of-living-energy-price-cap-expected-to-rise-by-163830-to-1632800-in-october-says-ofgem-chief-12620359

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