Timeline of energy cap increases as bills rise 80% in six months

The government has announced new measures to help companies cope with rising energy costs.

The energy bill for companies, charities and the public sector will be capped for six months from October.

It comes after Prime Minister Liz Truss also announced a household energy price guarantee that would ensure that no household pays more than £2,500 in energy bills.

Ofgem announced that the energy price ceiling would rise by 80% in October

(PA wire)

The proposals come in response to the devastating cost of living crisis that has seen energy bills catapulted to staggering numbers as UK regulator Ofgem continues to announce increases in energy price ceilings.

People protest outside Ofgem headquarters in Canary Wharf

(PA wire)

The most recent increase in the energy price cap came in late August, confirming an 80 percent increase for the average household.

Here’s a timeline of Ofgem’s energy price cap announcements over the past two years:

February 2019

In February 2019, Ofgem announced that the limit would be increased by £117 to £1,254 from April.

It said the prepayment meter limit would increase by £106.

August 2019

The regulator announced a reduction in the standard rate cap and the prepayment meter.

The standard fare was reduced by £75 to £1,179, while the prepayment meter was reduced by £25 to £1,217.

Energy bills have exploded in recent months and the worst is yet to come

(PA wire)

February 2020

In this month, there was another one percent drop for both meter and tariff ceilings by one percent.

The standard rate fell to £1,162, while the prepayment meter fell to £1,200.

August 2020

Ofgem introduced new lower levels of typical electricity consumption to calculate the equivalent figures of the annual bill of the price cap.

The regulator announced that the standard rate cap would be reduced by seven per cent from £1,126 to £1,042 by October 1, 2020 to March 31, 2021.

As of October 1, the standard rate cap also included a new maximum level for customers with prepayment meters.

Electricity pylons run across Romney Marsh in Kent from Dungeness nuclear power station

(PA wire)

February 2021

After months of declines, Ofgem announced that both price caps would rise from April 2021.

The standard rate price cap rose £96 to £1,138, while prepayment meters rose £86 to £1,156.

August 2021

Ofgem announced that both caps would rise from October 2021.

Standard rate customers would see an increase from £139 to £1,277 and an increase from £153 to £1,306 for prepaid customers.

February 2022

This year, the biggest jumps were in the rise in the energy price ceiling. It started in February with an increase that would affect 22 million customers.

Increases in energy price ceilings announced by Ofgem will reach unaffordable amounts by 2022

(PA wire)

The average customer with a standard rate paying by direct debit would see £693 rise to £1,971 from April 2022.

For a prepaid customer, an increase from £708 to £2,017 was to be expected.

August 2022

On August 26, it was announced that from October 1, 2022, the energy price cap for the average direct debit household would increase by £1,578 to £3,549 a year.

This is an increase of 80 percent of the payment.

For the prepayment meter, the limit would increase by £1,591 to £3,608.

The shocking rise in the energy price cap sparked a government response after widespread calls for action.