Responding to the announcement from Ofgem that the Energy price cap will rise for the first time this year to £1,717 from 1st October 2024, Simon Virley CB, Vice Chair and Head of Energy and Natural Resources at KPMG UK, said:
“When four in 10 consumers are still having to cut back their non-essential spending1 due to the cost of living, rising energy prices will be a huge concern for the many households who are not on fixed deals just as we enter the winter months. Average dual fuel bills remain well above the levels prior to Russia’s invasion of Ukraine and the fact that prices remain slightly below the levels of last winter will be of little comfort to those households.
Switching appetite remains well below the levels seen before the price cap was even introduced. The price cap has effectively become the default tariff over the past 18 months, which limits the incentives for investment and innovation. So, it is important that reform of the retail market remains a priority for the Government and the regulator if we want to reap the benefits of a smarter, greener energy system.”
