Energy regulator Offgame has warned of “significant” price hikes and more company failures in light of rising gas prices.
Speaking at the Energy UK conference on Thursday, offgame president Jonathan Brearley said customers will face “an extremely difficult time” as rising costs “eventually get passed through on the bills”.
He also warned that the price range would likely increase, adding that “it is designed to reflect reasonable costs and will therefore need to be adjusted over time to reflect changes in fuel prices.” “.
In what he said was an “unprecedented” time for the energy market, Mr Brearley said more company failures were to be expected.
He added that the industry has already seen twelve companies fail and that “given the continued volatility of the market, it is likely that more suppliers will exit the market”, adding: “I am looking forward to working in those companies and for their customers.” I appreciate the hardships of the people.”
The default tariff cap set by regulator Offgame is currently set at £1,277, but many industry experts are expecting this to increase when it is updated next year.
Mr Brearley indicated that customers would see an uptick in energy price caps, adding: “While gas prices remain high, caps will inevitably need to reflect them to allow suppliers to recover their costs.” But it is still protecting millions of customers from the full impact and speed of the rising cost of prices that we are seeing today.”
He also said that OffGame would take more steps to regulate the market, in light of the many companies struggling to cope with the hike in gas prices. He promised to build a market that was “more resilient” to the volatility seen in the past few months.
This would include continuing to limit the number of new entrants to the sector.
Offgame’s president also said it would be necessary to “diversify” the country’s energy sources and highlighted its excessive reliance on gas.
More to follow…
Credit: www.independent.co.uk /