'People will be awaiting energy price cap announcement with dread'

The energy price cap announcement by Ofgem is being awaited by people across the country with “dread in the pit of their stomach”, a charity has warned.

Citizens Advice Scotland has insisted that there should be no further increase in the price cap, ahead of the announcement being made by the energy regulator early on Friday morning.

Annual household bills are being forecast to soar to more than £3,500 in October.

Ofgem sets the cap based on how much energy firms are having to pay for gas and electricity.

📣 You may be entitled to help with your energy bills.

Many energy companies offer schemes or grants to help with home heating and energy costs.

You could even get help if you are in arrears.

Scroll for more details or tap below👇https://t.co/RTZpU8UC25 pic.twitter.com/JU8VuNd5YX
— Ofgem (@ofgem) August 18, 2022

It is intended to protect consumers against overcharging by limiting the amount that suppliers can charge for each unit of gas and electricity.

Ofgem has announced that it will be reviewing the cap every three months instead of every six, with the latest changes set to kick in from October 1.

There are fears that the rise could cause significant financial difficulties for households right across the UK.

Calls have been made for the price cap to be frozen to help people struggling with the rising cost of living.

Ahead of the announcement, due to be made by Ofgem at 7am on Friday, Citizens Advice Scotland called for a pandemic level response to the crisis.

📊📈Today we have published our first quarterly #CostOfLiving analysis looking at trends and patterns in advice data across the Citizens Advice network.

You can read the full report here 👉 https://t.co/kB4bWaZkZn pic.twitter.com/hqegQqFwIk
— Citizens Advice Scotland (@CitAdviceScot) August 22, 2022

Chief executive of the charity, Derek Mitchell, warned that people will “freeze or starve” without getting urgent help.

“There should be no further increases in the price cap. People will be awaiting today’s announcement with a feeling of dread in the pit of their stomach,” he said.

“CABs are on the frontline of this cost of living crisis and what they are seeing is increasing amounts of people hanging on by their fingertips. They cannot afford another huge increase in bills.

“The Citizens Advice network is already seeing increased demand for, and a direct link between, food insecurity advice and energy advice.

“It’s the summer time, what are people supposed to do when temperatures drop but bills keep rising? People will freeze or starve without urgent help.

“We need to see a pandemic level response from government. That means targeted support for the most vulnerable people and for advice services like CABs.”