UK Ofgem Price Cap Announcement: customers to see a ~54% increase

• 
  Further measures include enabling Ofgem to update the price cap more frequently than every six-months under exceptional circumstances; measures to be announced on Friday.


• Energy companies will be allowed to pass these higher costs on from April, when they come into effect.

Breakdown:

• 
  Direct Debit: GBP 1971 (prev. GBP 1277); +54%


• 
  Prepayment: GBP 2017 (prev. GBP 1309); +54%


• 
  Standard Credit: GBP 2101 (prev. GBP 1370); +53.36%

via Ofgem

Analysis details (11:10)

• Reminder, UK Chancellor Sunak to speak at 11:30GMT/06:30EST.


• To make a major announcement to shield Brits from crippling heating bill rises, according to The Sun. Part of the announcement is expected to see poorer households provided council tax rebates, whilst all households are expected to see a GBP 200 reduction in energy bills, according to The Times and FT.


• Note, UK press was generally speaking looking for around a 50% increase to the price cap.

03 Feb 2022 - 11:00- - Source: Newswires