New research by MoneySuperMarket has found that over 11 million consumers could see their energy bills balloon by 20% in 2021.
The research found that bills for 11 million consumers on standard or default tariffs are set to rise by an unprecedented 20% since the start of the year it also found that energy bills could also jump by more than 10% next month.
The 10% jump in energy prices is expected to be confirmed by Ofgem next month. The surge in costs is due to a range of factors including energy usage increasing globally and – domestically – business energy consumption rising with lockdown restrictions ending.
Ofgem, the energy regulator now sets ‘maximum’ prices for customers on standard tariffs every 6 months and, unfortunately, the next announcement, due in the first week of August, is expected to hike prices up by well over £100 a year (possibly as much as £150), that’s well over a 10% rise. And that is just the ‘average’ rise. If there are more than two members per household, chances are that the hike might be closer to £200.
If consumers are on a standard variable rate or default tariff then there is a good chance they will see the full extent of that increase on top of the 9%.
Stephen Murray, Energy expert at MoneySuperMarket, said “The increase in energy bill prices this year has been unprecedented. And if, as now looks inevitable, Ofgem announces this huge increase next month, bill payers on standard tariffs will have experienced a 20% increase in costs this year alone.”
“This huge step up in prices will take effect from 1st October, just as heating gets switched on around the country and bills are generally higher anyway.”