Energy bills set to skyrocket after Christmas

Energy bills are set to skyrocket even further in the new year, providers have warned.

Good Energy, EDF and trade body Energy UK have told the Financial Times that the Government urgently needs to intervene after the cost of gas in wholesale markets rose by more than 500% in less than a year.

Emma Pinchbeck, chief executive of Energy UK, described the situation as a “nationwide crisis”.

She told the FT: “Other treasuries in Europe have already responded to the crisis, but in the UK, the energy sector is still asking if the Chancellor knows that energy bills going up by over 50% in the new year is a problem for ordinary people, businesses and the economy.

Nigel Pocklington, chief executive of Good Energy – a small renewable energy firm, told the newspaper the UK is facing a “national crisis” after recent rising prices created “an extremely difficult operating environment for every business in the industry”.

EDF Energy has also warned the Government must act immediately to support customers.

More than two dozen energy suppliers have gone bust since the start of September, putting thousands of people out of work and leaving millions of homes in limbo as they wait for a new supplier.

Suppliers said the cost will be passed on to households up and down the country, putting further pressure on already rising bills.

Many in the energy industry blame part of the problems on the energy price cap. The cap is currently set every six months, and as gas prices have soared in recent months it has forced suppliers to provide energy to households at eye-watering losses.

The industry regulator, Ofgem, has proposed a series of short and long-term solutions to the issues the price cap causes in extreme circumstances.

These include reviewing the price cap every three months, or overhauling it in favour of a six-month fixed tariff.