Energy prices could rise again in the summer - this is why

manchestereveningnews.co.uk:

Energy prices could increase again in the summer after Ofgem handed itself new powers to make emergency changes to the price cap.

The watchdog said in a letter to suppliers that it would look after households by helping energy firms. It comes just a day after it was announced that energy bills will increase by as much as 50 per cent on April 1. Read more: Have your say on the rise in energy bills Officials claim that changes to the price cap will reduce risks for suppliers - this includes the ability to change it more than twice a year.

Ofgem’s letter said: “The changes introduced in cap period eight will benefit customers by reducing systemic risks for suppliers.” Because dozens of energy suppliers have gone out of business throughout the previous six months, it will cost each household an average of £68 to protect customers of these suppliers.

It was the result of a massive rise in wholesale gas prices which companies supply to households. The limited price cap meant that companies were forced to sell the fuel at a loss.