Families face an additional £800 rise in energy bills in October, warns former NPower boss
April 1, 2022, 08:20 | Updated: April 1, 2022, 08:22
Energy bills could rise by another £800 when the price cap is reset in October, the former NPower CEO has warned.
Paul Massara told LBC’s Nick Ferrari over breakfast that it was a ‘very worrying time’ for households facing rising energy bills and a cost of living crisis as he launched a stern warning that bills would continue to rise.
The former NPower boss told Nick: “The reality is that the price cap protected people during the winter period, but now it’s back and it’s biting.
“An increase from £700 to £2,000 is incredibly significant and for the most needy people, the most vulnerable people, who are basically trying to budget on a day-to-day basis, it’s going to be a massive shock.”
He added: “And what’s worse is that the forecast seems to be that in October when the cap is reset, we could be anywhere between £400 and £800 extra.”
He stressed that the government “needs to do more”, adding that what it has done “isn’t targeted enough”.
“Let’s be clear, the £200 handover, as they call it, is a loan,” he explained.
“This loan means your bill is slightly lower today, but needs to be paid back over the next five years.”
Read more: Cost of living crisis: Britons wake up to soaring energy bills as MPs get £2,000 pay rise
He added that people living “hand to mouth” will be the most affected.
The energy price cap rose 54% on Friday morning, meaning households are facing much higher costs for heating and powering their homes.
This is an increase of £693 as Ofgem, the energy sector regulator, allowed bills to climb to £1,791.
A number of energy websites crashed on Thursday as millions of people tried to submit their meter readings to avoid being misquoted for their next bill.
Read more: ‘I didn’t think it would be that bad’: Martin Lewis warns energy bills could top £2,500
The websites of E.ON, British Gas and EDF Energy have been affected by “unprecedented demand”.
The pressure comes amid runaway inflation, made worse by Russia’s invasion of Ukraine.
The government will signal a package of support announced by Chancellor Rishi Sunak, but already members of his own party have suggested he will have to announce more aid.
Speaking to LBC on Wednesday ahead of the price cap hike again, money-saving expert Martin Lewis said the rise was “catastrophic”.
“I didn’t think it was going to be that bad,” he admitted.
“I thought it was just going to be bad, I didn’t think it would be catastrophic.”