The UK’s energy crisis is at an all time high with energy bosses saying that the sector is working to minimise cost increases.
Currently the energy price cap which is the maximum amount that you can be charged on a default tarrif is £1,277. Some experts are predicting that the cap will jump in April as the price of gas continues to rise.
The new level for the price cap, which applies to England, Scotland and Wales, is due to be announced on 7 February.
Mr Jackson the CEO of Octopus Energy told BBC’s Today programme: “The reality is that in the energy sector, the UK buys most of its energy on a global market and we’ve had to pay about £20bn more than usual this year.
“So in one way or another, the UK’s going to have to pay that money.”
In the past weeks the government and representatives from the Department for Business have been meeting with energy bosses to try to lessen the affect that this price hike will have on the cost of living. The government is currently looking into subsidising energy companies by creating a fund to allow them to draw on government funds when wholesale gas prices are very high, then pay it back when prices dip.
Mr Jackson said;”I should say that the days of energy companies making fat profits are long gone and the entire sector is loss-making, because we’re now so focused on driving costs down for customers,”
“That’s the area where we as companies can work hard.”
While they cannot say for certain how much this will cost the average UK consumer, one thing is for certain there will be a big bill in April.
Even though weather is likely to be warmer then, most people pay for their bills in a smooth direct monthly debits. This means that the changes will dramatically change the financial plan intensely and immediatly.
Are you worried about the increase in the cost of living? Let us know in the comment section below!