FRIDAY 8^th October, 2021: The Office of Gas and Electricity Markets (OFGEM) has warned that households should expect inflation in the prices of household energy come next spring.
According to its Chief Executive Officer, Jonathan Brearley, the price cap which limits how much energy providers can charge per unit, would experience a price hike due some unprecedented rises in gas prices.
According to Brearley in an interview with BBC, the price cap was put in place to stop firms from ripping off their customers and making unfair profits.
He however stated that it was too early to determine how much inflation the prices would get in April 2022, or whether the OFGEM would review the price cap more frequently in future.
He added that the regulator might need to review the formula according to which the cap was set.
Households in Northern Ireland have also seen a recent sharp rise in their bills, but they are not protected by the energy price cap for Great Britain.
Natural gas prices are at record highs as economies around the world begin to recover from the global pandemic.