Ofgem's new chief executive Tim Jarvis has warned of a “difficult” winter ahead, expressing concerns that “people are going to struggle” without help. Speaking at the Energy UK conference in London, he said: “We can all see what’s happening to wholesale prices as a result of what’s going on in the Middle East, and we’ve seen the predictions for January. It’s going to be a difficult winter.”
Awaiting Budget decisions
Jarvis said decisions on how to support those most likely to struggle lie with the Government, adding: “Like many of you, I will be waiting to see what is announced in the Budget.” He noted he did not think it was his role to make the Government's job more difficult with unreasonable demands, but shared concerns that “people are going to struggle this winter without some help, and the earlier we can get decisions and we can work with the sector to help implement them the better.”
Price cap rise and forecasts
A 4% hike to Ofgem’s energy price cap took effect from October 1. Cornwall Insight’s latest forecast predicts the cap will rise by a further 16% to £1,999 a year on January 1, up by £276 on the level between October and December and the biggest rise since January 2023.
The End Fuel Poverty Coalition has urged ministers to prepare an “emergency heat tariff” to cap the cost of heating this winter, with gas prices already rising 27% year on year.
Household concerns
A poll for Uswitch suggests some 1.7 million households will not turn on their heating this winter amid fears of soaring bills and efforts to save money. While 5.7% of households plan to leave the heating switched off, 52% – or more than 15 million homes – say they are worried about being cold this winter, and 40% only plan to turn on the heating if they get too cold, the survey found.
