A pinch and a punch for the first of the month, and while we’re at it, here’s a hefty increase to your energy bills as well.
Today marks the introduction of a new energy cap arrangement in England, Scotland and Wales that will see the average domestic energy bill rise by £139 to £1,277 a year; pre-payment meter customers will see an increase of £153 per annum to £1,309.
Customers on a fixed tariff will not be affected by the rise … until their current contract runs out, at which point the prices on their next deal may come as a nasty shock.
The hike in energy price limits overseen by the industry watchdog Ofgem will affect around 15mln customers. Energy users in Northern Ireland are unaffected by the new cap as energy prices are set by a different mechanism there.
It is the second energy price rise this year after April saw typical annual energy bills rise by £96 a year but has come too late to save several small energy suppliers that have been unable to absorb the increase in wholesale energy costs.
Nine suppliers have gone bust in September alone and more are expected to go to the wall before the year is out.