Energy bills could rise again

Millions of households are being warned their energy bills may have to go up even though suppliers face the prospect of increased profits, according to a new report by regulator Ofgem.

Latest ITV News reports

Energy firms 'to make more money' per customer

These figures show how the profits of energy companies are set to rise:

  • The average margin for a typical, standard tariff dual fuel customer is approximately £50 (£5 higher than Ofgem's previous estimate)
  • But it's expected that profit margin will rise to around £70 over the next three months
  • It's because bills for some customers are going up
  • Bills may also need to rise by 14% to 25% to pay for investment to increase Britain's energy systems by developing more low carbon power stations

Source: Ofgem

Advertisement

Advertisement

Price rise warning despite prospect of increased profits

Millions of households are being warned their energy bills may have to go up even though suppliers face the prospect of increased profits. A report by energy regulator Ofgem warns the closure of power stations will reduce Britain's spare electricity capacity which will put pressure on prices.

Millions of households could be affected by higher bills
Millions of households could be affected by higher bills Credit: Press Association

The regulator has also revealed energy companies are making more profit from each customer.

The average margin on a dual fuel bill is £50, slightly higher than previous estimates. But Ofgem predicts that margin will rise to around £70 over the next three months because some bills are going up.