Business News

GMB warns energy bills could rise faster due to change in OFGEM strategy

Published by
TBM Team

The energy regulator for Great Britain, OFGEM have announced a change in their policy which will mean that energy price cap updates will be more regularly updated.

As a result, price cap updates will take place every three months rather than bi-annually.

The energy union, GMB has responded by highlighting that this change will cause issues for consumers - with households already facing a cost of living crisis having to deal with the uncertainty of future charges.

GMB’s National Secretary, Andy Prendergast spoke about the shift in policy, saying: "This change will create unnecessary uncertainty for households.

"Although in theory this allows for bills to fall more quickly as a result of changes in the energy market, it also allows bills to be raised at a faster rate.

"Prices are forecast to go up in the medium term, meaning that struggling households are likely to see bills rise even faster.

"As prices rise, the Government must shoulder responsibility for its failure to tackle the difficult questions over gas storage and investment in new nuclear.

"Ministers and OFGEM should be providing customers with support and certainty instead, this announcement will lead to real worry that those just about managing will be tipped over the edge."

Read more: Vulnerable energy customers concerns alleviated by new power partnership

Read more: UK Atomic Energy Authority to build new R&D building at Culham Science Centre

TBM Team

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