Ofgem appears to have told ministers privately that the price cap is likely to rise to at least 2. 2,400 when it is reviewed in October. But a Whitehall source said the energy regulator had also warned that the ceiling could be more than doubled in the worst case scenario. The source said the situation was so “volatile” that an increase to £ 5,000 could not be ruled out. While this is the most extreme prediction, the fact that officials expect another significant increase in the ceiling in the fall will terrify families struggling with the most recent στις 2,000 increase. Sources said that Rishi Sunak should “inevitably” offer more financial aid if energy prices rise significantly again. Last October, the energy price ceiling rose to 27 1,277, before jumping to 97 1,971 this month, as the war in Ukraine and the global pandemic recovery sent gas prices soaring. “It’s early – we’re only two months into the six-month forecast period – but the initial indications we have are that the price ceiling will rise again in October,” the source told the Daily Mail. “The central forecast is for another increase of 20 percent to about 2,400 £. “But because the situation is very volatile, the range is very large – it could be between 1.5 1,500 and £ 5,000, depending on the extent to which the war is affecting gas supplies.” The source said that Rishi Sunak “inevitably” should offer more financial aid if energy prices rise again significantly. The chancellor has already agreed a 200 200 “energy discount” – which will be removed from the city council’s tax bills – to deal with the £ 700 increase in this month’s price ceiling. However, critics say this is not enough, pointing out that the cash will have to be returned to the Treasury anyway by charging 40 40 in accounts for each of the next five years. “If the ceiling is raised again in the autumn, we will inevitably have to do more,” the source said. Another jump in energy bills will heighten concerns about the effects of rising prices. The next price cap will be set by Ofgem in August and will take effect in October. Over the weekend, money-saving expert Martin Lewis warned that Britain could face “civil unrest” unless ministers intervene to help households facing a strong choice between heating and food. In March last year, the energy price ceiling was just 1.0 1,042. It rose to 27 1,277 last October, before jumping to 97 1,971 this month, as the war in Ukraine and the global pandemic recovery sent gas prices soaring. Boris Johnson announced last week a new energy security strategy designed to reduce prices in the medium term. But Business Minister Kwasi Kwarteng acknowledged that it would have no effect on the bills for at least three years because of the time it takes to set up a new power plant. The next price cap will be set by Ofgem in August and will take effect in October.
M&S makes wow value
Marks and Spencer has become the latest grocer to commit to keeping prices low for buyers facing the cost of living. The 138-year-old retailer no longer wants to be considered just a luxury choice, extending his choices to supermarket-type products. It started a “Remarksable” value range in 2019 and has since plowed εκατο 100 million to offer low prices on products such as minced meat, milk and bananas. And yesterday, cut prices across the value range. In a letter to customers, incoming CEO Stuart Machin promised to maintain the brand’s high quality products by offering “an excellent daily price”. Describing new lower prices for Remarksable products, such as milk, bread, beef and spaghetti, M&S said it was “investing in the value of everyday items that families buy every week, without compromising quality”. Ofgem declined to comment on forecasts, but a source said current forecasts were subject to “significant uncertainty”. Conservative former Secretary of State Robert Halfon has warned that doubling the energy ceiling would cause “mass impoverishment”. “It crushes people – they can not afford it as it is, and we will just create mass misery if we do not do something,” he said. “We will have to do a lot more.” Craig Mackinlay, of the Net Zero Scrutiny Group of Torres MPs, said such an increase would be “far beyond the reach of most families”. “I do not know how people will cope – people are not going to do well at £ 2,000 a year, let alone £ 5,000.” He urged the Chancellor to abolish VAT and environmental levies on energy bills. Conservative supporter Nigel Mills said Mr Sunak should intervene by the autumn to help struggling families, but warned: “There is no way we can get rid of this pain from everyone.” Mr Mills told BBC Radio 4 World at One: “What I think we need to make sure we focus on is that those who have the least – those who receive unemployment benefits or sickness benefits or a state pension – have enough to pay for very basic standard of living that we expect them to have “. Tonight, a government spokesman said: “We do not recognize this blatant exaggeration. “Any forecast for the level of the price ceiling, set by Ofgem and not by the government, is highly speculative.”
