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UK energy industry urges more help as bills set for another cap rise
Energy UK said Ofgem’s October price cap is expected to hit a three-year high, with Cornwall Insight forecasting a 4.0% increase for the first half of next winter.
Energy UK, the trade body representing energy firms, said struggling UK households need additional support beyond the current Warm Home Discount as higher bills this winter become harder to afford.
The group warned that stubbornly high prices have left people requiring “emergency support” on top of the existing one off £150 Warm Home Discount, and it called for a more targeted and flexible scheme. Energy UK chief executive Dhara Vyas said record energy bill debt shows the current approach is not providing the right help to those in need.
The push comes ahead of Ofgem’s next energy price cap announcement for October onwards, which the regulator is expected to set at a three-year high. Cornwall Insight forecasts the cap will rise 4.0% over the first half of the coming winter, following a 13.0% increase in July.
Energy UK also cited Ofgem data showing customers who had fallen behind on their bills owed suppliers a record £4.7 billion at the end of last winter. The industry body pointed to higher wholesale prices linked to the start of the Iran war in February, and it said heatwaves across Europe have increased power demand, with the anticipated price rise expected to outweigh a proposed VAT removal on household electricity bills from October.