The typical household gas and electricity bill will increase to £3,549 in October, after Ofgem announced a new increase to the energy cap on Friday morning.
The rise of 80% and means millions of people will see a huge rise in the amount they pay for their energy from the start of next month.
The announcement was met with widespread dismay. Charities, politicians, consumer champions and industry experts warned of the massive impact on millions of people across the country.
Here is how some responded to the news:
‘Truly catastrophic’Keith Anderson, Scottish Power’s chief executive
Scottish Power’s chief executive Keith Anderson said: “The size and scale of this issue is truly catastrophic.”
The energy giant has proposed a £100bn plan to freeze energy bills for two years in the face of the cost of living crisis.
‘Very worrying’Jonathan Brearley, CEO of Ofgem
Jonathan Brearley, CEO of Ofgem, said: “We know the massive impact this price cap increase will have on households across Britain and the difficult decisions consumers will now have to make. I talk to customers regularly and I know that today’s news will be very worrying for many.”
‘Stress, anxiety, illness, debt and death’Peter Kelly, director of Poverty Alliance
Charities faced with supporting millions of people already struggling with soaring bills reacted to the rocketing price cap rise with fear.
Poverty Alliance director Peter Kelly said energy hikes will cause “stress, anxiety, illness, debt and death”.
‘Horrifying’Derek Mitchell, chief executive of Citizens Advice Scotland
Citizens Advice Scotland chief executive Derek Mitchell said: “This increase should not go ahead. It is absolutely horrifying for people who are hanging on by a thread financially.”
Age Scotland’s chief executive called Ofgem’s price cap announcement “eye-watering”
Advice Direct Scotland said the impact on many people already struggling with bills would be “devastating”.
The Joseph Rowntree Foundation said “stratospheric” energy bills will completely wipe out incomes for low income households.
‘Terrifying’John Dickie, Child Poverty Action Group (CPAG) in Scotland director
Director of the Child Poverty Action Group (CPAG) in Scotland John Dickie said the energy cap announcement will “terrify” many low-income families.
‘Stress and anxiety’Nadhim Zahawi, chancellor of the exchequer
Chancellor Nadhim Zahawi said he knew the announcement would cause “stress and anxiety” but that help was coming.
“Direct support is on its way, including the second instalment of the £650 cost of living payment for vulnerable households, extra help for pensioners and those with disabilities, and the £400 energy bills discount,” he said.
The SNP’s shadow chancellor Alison Thewliss MP said the announcement was “devastating”.
Scottish Conservative shadow energy minister Liam Kerr said both the Scottish and UK Governments must take action or many people will be facing an “impossible winter”.
Scottish Labour leader Anas Sarwar said: “This eye-watering price hike risks plunging millions of people into fuel poverty.”