Autumn energy bill rise inevitable, says Ofgem boss

A further rise in energy bills in England, Wales and Scotland in October is "inevitable" as the gas crisis has entered a "more serious phase", the boss of regulator Ofgem has said.

Jonathan Brearley said the wholesale price of gas had been volatile since Russia's invasion of Ukraine.

He said the resulting higher costs for suppliers would be passed through to consumers.

He described the situation for billpayers as "tough".

"We are entering a second, more serious phase that will have further consequences for customers and further strain for retail companies," Mr Brearley said in a speech in Glasgow.

"While it is too early to predict what the price cap will be in October, a price increase is almost inevitable."

The widely-predicted increase comes on top of a £700 typical rise in annual domestic gas and electricity bills, which took effect in April when the price cap was last raised. Consumers in Northern Ireland - not covered by the price cap - have already seen significant increases in bills.

Businesses have also faced higher energy costs, which may lead to them charging higher prices.

"I talk to customers on a regular basis and I know how tough the price changes already announced will be for many households and businesses - let alone further rises," Mr Brearley said.

"I have never seen a situation like this. Indeed, I cannot find a similar situation in our post-war energy history."

He reiterated the regulator's plans to toughen up its oversight of suppliers, and support to move away from a reliance on gas.

Earlier on Monday, the National Institute of Economic and Social Research suggested an estimated 1.5 million households across the UK will struggle to pay food and energy bills over the next year.

A Treasury spokesperson said the country has had a "strong economic recovery" from the pandemic but acknowledged that these were "anxious times", and said the government was taking action to support households.