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23 November 2023

Response: Ofgem raises energy price cap

Response: Ofgem raises energy price cap

Millions of people will now pay £94 a year more for their energy bills after Ofgem announced that it will be raising its price cap from January 1.

The energy regulator's 5% increase will see the average price cap jump from £1,834 to £1,928 annually.

Ofgem said this increase was due to the rising wholesale cost of gas and electricity globally.

Rhea Stevens, Community Housing Cymru’s head of policy and external affairs, said: “The news that Ofgem has lifted the energy price cap again will be heart-breaking for many people on lower incomes who are already struggling to heat their homes.

“This winter will be worse for many people - but particularly for those living in housing association homes who continue to be among the hardest hit by the cost of living crisis.

“With energy bills now almost double pre-cost of living crisis levels, it is crucial that the UK Government urgently work to introduce a social energy tariff to ensure people on lower incomes, including many housing association tenants, can heat their homes without the fear of rising debt.

"Housing associations and their partners are doing all they can to help people at this challenging time. We would encourage anyone living in a housing association home in Wales to get in touch with their landlord if they are concerned about financial difficulties.”