Ofgem

Friday

James Heale

Is the energy price cap hike bad news for Labour?

17 min listen

Ofgem, the energy regulator, has announced that the price cap will rise by 10% in October. Is this bad news for Labour, or will they be successful in framing it as part of their economic inheritance from the Conservatives? And could this strengthen opposition to the proposed change to winter fuel allowance? Patrick Gibbons speaks to James Heale and John McTernan, former political secretary to Tony Blair.  Produced by Patrick Gibbons and Cindy Yu.

Friday

Ross Clark

Unreliable renewables will make energy more costly

It is of course good news that the Ofgem price cap for a dual fuel household bill will fall from £1,928 to £1,690 from April (that is the bill paid by the average householder). It means that there should be strong downwards pressure on inflation (the Consumer Prices Index) in April. Barring a jolt in inflation in other goods and services or an acceleration in earnings it ought to mean the Bank of England finally has the courage to cut its base rate, probably in May. None of that, though, should distract from the fact that energy prices in Britain remain far too high. For one thing, the huge fall

Wednesday

Steerpike

Wanted: Ofgem head of price cap policy

Where would we be without Ofgem, eh? Amid soaring energy prices and a cost-of-living crisis, the energy regulator this week unveiled its latest wheeze to help struggling households: updating the energy price cap every three months, rather than six, to try to avoid price shocks.  The cap – which is the maximum price per unit that suppliers can charge customers – is currently updated twice a year in April and October. Ofgem’s announcement came after a typical energy bill jumped last month from £1,277 to £1,971 and is forecast to soar a further 32 per cent when the cap is revised again in October. And, for those on prepayment meters, the price of energy has

Wednesday

Ross Clark

Is this Boris’s ‘Crisis, what crisis?’ moment?

Will it turn out to be Boris Johnson’s Jim Callaghan moment? Briefing reporters on his plane to the US on Sunday, the current PM tried to play down the energy crisis, saying:  ‘It’s like everybody going back to put the kettle on at the end of a TV programme, you’re seeing huge stresses on the world supply systems.’  The gas price spike would be over just as soon as it occurred, he implied, and was caused by nothing more than the global economy rebounding after many months on the Covid couch. It all had faint overtones of the moment during the Winter of Discontent 42 years ago when the then