, because — controversial decision by ofgem, because as — controversial decision by ofgem, because as looking at significant _ forecast, we are looking at significant price _ forecast, we are looking at significant price rises- forecast, we are looking atj significant price rises again forecast, we are looking at i significant price rises again in january _ significant price rises again in january just _ significant price rises again in january just to _ significant price rises again in january. just to put _ significant price rises again in january. just to put a - significant price rises again in january. just to put a few i significant price rises again in i january. just to put a few figures to add _ january. just to put a few figures to add to — january. just to put a few figures to add to jack's point, _ january. just to put a few figures to add to jack's point, last - january. just to put a few figuresj to add to jack's point, last winter typically. — to add to jack's point, last winter typically. if— to add to jack's point, last winter typically. if a _ to add to jack's point,

ofgem has wind ener: of their own money. ofgem has wind energy markets _ of their own money.their own money. ofgem has wind energy markets can move _ of their own money. ofgem has wind energy markets can move very - energy markets can move very quickly. it says any forecast for next year should be treated with extreme caution. nevertheless, the latest predictions are likely to fuel concerns that consumers are facing an ever steeper struggle to cope with rising prices. theo leggett, bbc news. 0ur political correspondent nick eardley is in westminster. still huge pressure on the government to act? the still huge pressure on the government to act? still huge pressure on the rovernment to act? , ., ._ government to act? the figures today have added to — government to act? the figures today have added to that _ government to act? the figures today have added to that pressure, - government to act? the figures today have added to that pressure, for- have added to that pressure, for some reassurance from ministers about what they are going to do about what they are going to do about

what are the tools you, ofgem, see as possibilities? ii you, ofgem, see as possibilities?rs. i appreciate the | point you are making. looking for ministers. i appreciate the i point you are making. looking on for ministers. i appreciate the - point you are making. looking on the ofgem website there is a line people might refer to relating to people really struggling. worried about the future. as i understand, in your rules, suppliers must work with you the customer to agree on a payment plan you can afford under ofgem rules. can you explain that? people will be going now is what i can afford. i cannot afford more. are these suppliers are required by your rules to agree to a payment plan the customer thinks is what they can pay? customer thinks is what they can .a ? , customer thinks is what they can pay? accompany... a customer in arrears, pay? accompany... a customer in arrears. who — pay? accompany... a customer in arrears, who runs _ pay? accompany... a customer in arrears, who runs update, - pay? accompany... a customer in arrears, who runs update, must l pay? accompan

let me start -- is ofgem fixed on the surface at this point?i do not think ofgem will -- the regulator is to blame for the cap pricing on the direct read across from higher wholesale gas prices, which is the experience around the world. the price cap passes with a bit of a lag. what we see here is the cost of gas and conflict is with russia and ukraine, drawing this process out. tom: if it is not ifgem, is there the case where rewiring of the you key energy market -- u.k. energy market? dan: is important that we stack on the short run of what is a huge winter crisis and longer-term reforms. we have a dramatic change in energy to a world in which we have a economize power and do use power for more things like heating. there are long-term debates around the question of the market, but prices dive into very complicated reforms like wholesale electricity market. there, we need to be looking at measures that help use that gas, whether that is energy efficiency or looking at the power sector by building out more wind power. also in the short run, it

well, it is, that is what ofgem is saying.he market. it will help to prevent more suppliers failing but nobody wants to see suppliers failing, that's a lot of people for suppliers, customers who have been with those suppliers and ultimately more costs. let's not hide from the fact this is not good news for customers, it means more rises for customers at the most expensive time of year when the most expensive time of year when the consumption is highest. 50. the most expensive time of year when the consumption is highest.— the consumption is highest. so, what would ou the consumption is highest. so, what would you like _ the consumption is highest. so, what would you like to _ the consumption is highest. so, what would you like to see _ the consumption is highest. so, what would you like to see and _ the consumption is highest. so, what would you like to see and how - the consumption is highest. so, what would you like to see and how much l would you like to see and how much of a priority would you like this to be, whoever beco

it was set, believe it or not, to protect consumers - and it was set by ofgem in 2019 - when there werethose not switching supplier were paying more than they needed to. - but what we need now- is for the government to update the package of support they announced in may because the price cap we now know is coming to effect in october, - it is so much higher- than originally forecast. but in the long—termj to keep prices down, because everything is driven by fossil fuel prices, - we need the government to insert - homes and invest in renewable energy because that is ultimately what will keep costs down longer term. - down longer term. you have talked about those rising prices, let's bring in richard. can you explain why we have such huge energy prices? we are told it is the war in ukraine but as i understand, we only rely on 5% russian gas is that right? the uk is not especially exposed to russian gas as much as the rest of the europe. there are answers to these questions but there are no good answers the reality is the price of gas is set globally based on global supply and demand. beca

they do, and this announcement coming tomorrow from ofgem - now.is announcement coming tomorrow from ofgem will. now. they do, and this announcement coming tomorrow from ofgem will be | coming tomorrow from 0fgem will be huge because it will set out what the next couple of months will look like for millions of households across the country who are struggling to pay their bills. and within two weeks, we will also have a new prime minister. liz truss will have had her new cabinet installed, shall have done her first pmqs and be under huge pressure to say what she'll do for the cost of so far we've had another leadership postings tonight — she's been focused on tax cuts, being seen by many industry experts and economists that her tax cuts will not actually help with the vast majority of energy rises. so what we see in several of the front pages tomorrow are quotes from people closest to liz truss to say that when she does become prime minister, there will be a big package. now cast your mind back to an interview liz truss gave to the financial times w

and it was set by ofgem in 2019 when there were concerns - consumers and it was set by ofgem in 2019re than they needed to. those not switching supplier were - paying more than they needed to. but what we _ paying more than they needed to. but what we need — paying more than they needed to. but what we need now— paying more than they needed to. but what we need now is _ paying more than they needed to. but what we need now is for— paying more than they needed to. but what we need now is for the _ what we need now is for the government— what we need now is for the government to _ what we need now is for the government to update - what we need now is for the government to update the l what we need now is for the - government to update the package of support— government to update the package of support they — government to update the package of support they announced _ government to update the package of support they announced in _ government to update the package of support they announced in may- support they announced in may because — support they announced in may because the _ suppor

let's talk about some of that and the impact it could have. —— ofgem. —— ofgem.eally is quite scary riaht now. . ., ,, down the line really is quite scary riaht now. , .,, i. down the line really is quite scary riahtnow. , , right now. it is, as you say, very frightening. _ right now. it is, as you say, very frightening, unprecedented - right now. it is, as you say, very frightening, unprecedented and| right now. it is, as you say, very i frightening, unprecedented and in terms of why we are seeing this, the gas prices have risen astronomically on the wholesale market and they were starting to rise before the russian invasion of ukraine because after the nadhim zahawi lockdown, there is always pent—up demand —— after the covid lockdown, there was this pent—up demand then we had the russian invasion of ukraine and then we heard the russian state owned gas produces gazprom shutting down a key point in that supplies europe and although in the uk we don't really rely on russia for much of our gas, because it has gone down by 80%, the capacity of the pipeline, countri

if all of this _ happened, last year ofgem announced there had _ happened, last year ofgem announceds more with the bills. but they are more, get it| equate ourselves more with the i bills. but they are more, get it to most _ bills. but they are more, get it to most people _ bills. but they are more, get it to most people to _ bills. but they are more, get it to most people to understand. - bills. but they are more, get it to most people to understand. on . bills. but they are more, get it to most people to understand. on the bill thin , most people to understand. on the bill thing. as— most people to understand. on the bill thing. as i _ most people to understand. on the bill thing, as i understand - most people to understand. on the bill thing, as i understand it, - most people to understand. on the bill thing, as i understand it, some| bill thing, as i understand it, some of the energy companies are saying, the reason your monthly has gone up by this amount, is because they are trying to make it easierfor by this amount, is because they are trying to make it easier for you by this

ofgem says doing it twice a year— six months. ofgem says doing it twice a year is — six months.ths. ofgem says doing it twice a year is no longer- twice a year is no longer sustainable given the dramatic changes in the cost of energy that supplies need to buy. we changes in the cost of energy that supplies need to buy.— supplies need to buy. we have to make sure _ supplies need to buy. we have to make sure the _ supplies need to buy. we have to make sure the pricing _ supplies need to buy. we have to make sure the pricing regulationl make sure the pricing regulation happens — make sure the pricing regulation happens in this market because otherwise... inaudible. we have to strike a balance here. tt we look at this chart, you can see what this may mean for the bills. 0ctober what this may mean for the bills. october last year, this was the annual typical household bill for gas and electricity, and it doubled in april. the bank of england expects the price cap to go to £3500 ijy expects the price cap to go to £3500 by october, and analysts predict even higher bills injanuary, when

it's the result of the regulator ofgem increasing its price cap — that is the maximum amount that peopleard variable tariff can be charged per unit of energy. abby is a single mum living in ipswich. the energy price rise will hit her hard. it is very sobering news for households across the country and in a moment will be looking at how you might be able to save energy and what additional help the government can offer. but first, here's our business editor simonjack. abby is a single mum living in ipswich. the energy price rise will hit her hard. she has a part—timejob which earns her £1000 a month, but her energy bill is going up from £80 to £250 in october, which she will struggle to find. is there anything you can cut? honestly. . . no. as she looks at her stretched budget, her primary concern is for her children. you don't want them to go without, so as long as they are fed, that's my main priority. as long as i fed them, i don't really mind. if i can sort them out, i'm happy with a bit of toast, that doesn't bother me. but you just know that they're going to end up going without. ann

on the 26th of this month, the regulator ofgem will announce the new higher energy price cap.an be paid for each unit of gas and electricity. ten days later, on the 5th of september, the new conservative party leader and prime minister will be announced. and just three weeks after that, the new higher price cap will come into force, leading to much higher bills. live to westminster and our political correspondent jonathan blake. when we look at the kind of pressure that ministers are under to come up with something concrete and practical, where are we in that process now?— practical, where are we in that rocess now? ~ ., ., ., process now? well, tomorrow the business secretary _ process now? well, tomorrow the business secretary and _ process now? well, tomorrow the business secretary and the - business secretary and the chancellor will meet representatives from firms who produce electricity in the uk, but both departments are playing down the significance of that, as any kind of break through. i'm told the chancellor wants to call on those companies to say what they can do to

it's the result of the regulator ofgem increasing its price cap — that is the maximum amount that peopled variable tariff can be charged per unit of energy. it means the typical gas and electricity bill willjump to £3,519 a year from october, and almost £60 more if you're on a pre—payment meter. this figure isn't the maximum you can be charged — it is an average. and it's predicted that prices will rise even further next year. annual bills could exceed £5,000 from january 2023, and then more than £6,000 from april. it's very sobering news for households across the country, and in a moment, we'll be looking at what help the government has already offered and what more it could do. but first, here's our business editor, simonjack. abby dezso is a single mum living in ipswich. the energy price rise will hit her hard. she has a part—timejob which earns her £1000 a month, but her energy bill is going up from £80 to £250 in october, which she will struggle to find. is there anything you can cut? honestly. . . no. as she looks at her stretched budget, her primary concern is for her children. yo

the energy price cap is set by the regulator ofgem. it's rising by 80% in october.yment meter customers pay a little extra — a typical usage bill from october, then, will be £3,608. i am afraid the pain may not be over. the energy price cap is now reviewed every three months. analysts are predicting a rise injanuary and another one in april, with every increase, more and more people will face financial difficulty. people here in reading are starting to feel the pinch. at the moment, it is ok. but, eventually, it will come to a point where especially. in the winter you will struggle. so, i am quite lucky, i but i can imagine a lot of people will do. people we know who are earning decent wages are starting to get quite concerned as well. and you are ok, do you get a reasonable wage? i would say it is a bit more than average but, again, i'm finding it difficult. every household will get £400 off their bill in six instalments from october, with more help for pensioners and those on lower incomes. but there is frustration for some at the lack of clarity on exactly when m

this is from a consultancy firm, they are forecasting the energy cap set by ofgem, the maximum suppliersey think that could push bills up to £6,000 a yearfrom next think that could push bills up to £6,000 a year from next april. think that could push bills up to £6,000 a yearfrom next april. to put that in context, currently the price cap is £2000. that would be a threefold increase. i must say, this is speculatively, based on the daily wholesale gas price, that is very volatile and can fluctuate a lot. i spoke to the consultants earlier, they set the price could come down and april is a long way away which ofgem points out. they say they never speculate, they are focused on the current cap, due to be reviewed again published on friday. that will kick in an october, expecting it to rise to £3500 a year, already a lot more paying for households. for context, more paying for households. for context. the _ more paying for households. for context, the current energy cap keeping the bells atjust under £2000, this will once again i pressure, namely the candidates leading the conservative party

want to scaremonger, the price could easily come down as well, and april is a long way away, which ofgemrm forecasts, they are focused on the current cap, due to be reviewed again published on friday. that will kick in in october, expecting it to rise to £3,500 a year, so already a lot more pain for households. for context, the current energy cap keeping the bills atjust under £2,000, so this will once again add pressure to those looking at this, namely the two candidates leading the conservative party leadership race? you imagine this will be pretty high on the next pm's intray. liz truss, the favourite, and the headlines it generates will increase the pressure for them to set out their plan. the government has already given help. there was a hand—out in april, another one coming, £400 for people with this new cap, more help for familes on lower incomes. interestingly, the business secretary kwasi kwarteng has written for the mail on sunday tomorrow and says, "i understand the deep anxiety this is causing as winter approaches. millions of families will be concerned about how they will m

here in the uk, where a new energy price cap will be announced this morning by the energy regulator ofgemis is the maximum amount companies can charge households for their energy use. the first rise saw prices to nearly £2000 and it could go up to £3000. average bills will hit £4650. let's hear from some people who are already struggling the heat their homes. #it # it takes a worried man to sing a worried song. we don't have the option _ sing a worried song. we don't have the option to _ sing a worried song. we don't have the option to turn - sing a worried song. we don't have the option to turn it - sing a worried song. we don't have the option to turn it off. have the option to turn it off or down— have the option to turn it off or down or not put the kettle on for— or down or not put the kettle on for the _ or down or not put the kettle on for the carers because my dad — on for the carers because my dad is — on for the carers because my dad must— on for the carers because my dad isjust so on for the carers because my dad is just so vulnerable. 86—year—old chris phillips has vascular de

he is not putting a figure on it, he is saying we will have to wait until we get that new ofgem price payments to those who needed it most. —— saying he will model it on. rishi sunak says he will base it on efficiency savings and government figures, but the truth is that the figures we have seen a small and about the price cap potentially coming up to 4000 georgian pounds for the typical household, they will mean that potentially the government is facing an even bigger bow to support people who need it the most. —— 4000 £200. i think liz truss is now under a lot of pressure to say what she is prepared to do. she said over the weekend she would rather cut taxes that give hand—outs. our allies say she is not ruling anything out, but we have not really heard ms truss say what she is going to do when it comes to direct financial assistance. what did she mean, for example, when she told the financial times that she wants to avoid what she calls more hand—outs. i think she calls more hand—outs. i think she will case a lot of questions over that. the whole backdrop to the leadership campaign

ofgem could change _ works to make it cheaper? ofgem could change how _ works to make it cheaper?esale price of gas is controlled and how the market works in terms of it not necessarily being where the gas comes from, it is the average for want of a better word and better description, the wholesale price of gas and it is the same because it goes into one pot for want of a better explanation. david legge says, why is nobody talking about smart metres, ie just paying for what energy you use. not putting money into the energy company's putting money into the energy compa ny�*s coffers. putting money into the energy company's coffers. isn't that partly why they are making such huge profits? i why they are making such huge rofits? , , , ., ., profits? i will split this into two and it is a _ profits? i will split this into two and it is a great _ profits? i will split this into two and it is a great question i profits? i will split this into two and it is a great question from | and it is a great question from david. smart metresjust and it is a great question from david. smart metres

headlines — tens of millions of people will see an 80% increase in their gas and electricity bills as ofgemnnounces a new price cap. the regulator and campaigners call for immediate government action. we need to remain resilient. we need to make sure that this isn't a sticking plaster, that for the long—term we continue to help the most vulnerable, who have no cushion. as europe's energy costs skyrocket, russia is burning off large amounts of natural gas which would've previously been exported to germany. a man has been arrested on suspicion of the murder of nine—year—old olivia pratt—korbel in liverpool on monday. the usjustice department prepares to release the court document used to justify the search of donald trump's home in florida. coming up in this week's film review, idris elba fights a lion in beast. what does anna smith think of this adventure thriller? she'll tell us and review the rest of the week's film releases. millions of households in england, scotland and wales are likely to see their energy bills soar by more than 80% after the regulator ofgem raised its price cap. that'

it is all very well say we have a regulator ofgem, and it is not very fashionable to be nice to energyes but we should have a bit of understanding. they are dealing with huge basic increases in the cost of oil and. those, political reason is is going on with the issues with ukraine and russia and russia and the pipelines. but there is a reason why it is more expensive for energy companies now to pay for their own costs than it has been for some time. of course, their passing that on to some consumers. it is unsustainable and we know there is going to be real suffering. ordinary people experiencing extreme deprivation, according to some of the predictions. i'm not suggesting this is something we should ignore, but i do wonder why there isn't anything in this story about how keir starmer is going to make it economical, make it possible for energy companies not to pass those price rises on. back to pass those price rises on. back to what the _ to pass those price rises on. back to what the treasury _ to pass those price rises on. back to what the treasury is _ to pass those price rises on

yesterday, the regulator ofgem confirmed a dramatic 80% rise in the energy price cap from october, takingrage annual household bill to more than £3,500. earlier, i spoke to lisa rodgers who's a teacher — she told me about how she'll be impacted by the energy price rise. i have two children, i am a single parent and, yeah, this is really scary. the moneyjust isn't there, and i am classed as one of these middle earners. just tell me about what your energy bills are at the moment. how much are they now? how much will they go up by? do you have any idea? well, i was paying £88 a month but that was on a fixed rate. that is now coming to an end and there are no deals i can get so i have to go onto the price cap. it was estimated to be around about £130, £135 a month, but that was before this increase again. and i don't know how much it will end up at. and how much is that putting pressure on all your other spending at the moment? well, it's basically meant that this holiday, we stayed at home. we've not done anything, we've not been on holiday, and we've not had days out or meals out, anything,

the price cap set by the regulator ofgem will rise by 80% in october.pical annual energy bill, paid by direct debt, will increase from £1,971 to more than £3,500. pre—payment meter customers will pay an average of £3,608 — that's £59 a year more than those on direct debit. our political correspondent ione wells said the prime minister's promise is not a guarantee of support. he's not the person who will be able to make that decision. he has been under pressure to say something, to be more visible, given this cost of living crisis has gone on through the summer, while the tory leadership contest has been ongoing. but i think those comments reflect a general consensus across the political spectrum camps. that there will need to be more support made available for households this winter and both candidates have hinted further this weekend at what that support might be, although we still don't have any exact clarity on that. there is quite a lot in the papers about what liz truss is looking at in terms of tax cuts. that's right. liz truss has stressed her pr

the executive of ofgem, the regulator, said on the today programme they were looking at the standinghow much he can change that we just don't know. as we heard earlier, we will hear on the 26th of august exactly what the price cap will be and how it'll be different between electricity and gas and what the standing charge will be but at the standing charge will be but at the moment it's a huge burden on low income families even if they stop using energy they are paying £615 a week if they have both in a prepayment metres. thank you. to reca - prepayment metres. thank you. to reca that prepayment metres. thank you. to recap that news — prepayment metres. thank you. to recap that news because _ prepayment metres. thank you. to recap that news because he - prepayment metres. thank you. to recap that news because he just i prepayment metres. thank you. to | recap that news because he just had access to those latest figures on the prediction of energy prices come october, we are waiting for the official announcement later this month but £4200 for the average annual gas and electricity bill

it's the result of the regulator ofgem increasing its price cap — that's the maximum amount that peopleor, simonjack, reports. a sense of scale is important when considering the size of the energy crisis. average gas and electricity bills of £296 per month go into the winter will be unthinkable. some predictions suggest they could go north of £500 a month next year, more than an average household's monthly income tax bill. out all those together and you get a giant dent in the economy, a significant clinical challenge for the new prime minister. we can do some calculations. it would cost the government an additional £18 billion if it wants to be as comparatively generous as it was in a. —— and may. you could expect to double that. if the increase in the cap could be scrapped for everyone, the cost would be £90— 100 billion. you scrapped for everyone, the cost would be £90-100 billion. you can aruue would be £90-100 billion. you can an ue that would be £90-100 billion. you can argue that once _ would be £90-100 billion. you can argue that once price _ would be £90-100 billion. you can ar

ofgem has urged the government to take urgent action.until the new prime minister takes office. borisjohnson minister takes office. boris johnson said minister takes office. borisjohnson said there will be extra cash to support household. labour accused the candidates vying to become the next prime minister of having almost nothing to say. buys all islam looks at what options the next government could have. the government's options, average gas and bills of £296 per month going into the winter will be unthinkable, and it's some predictions that if they could go north of £500 a month next year. that's more than a monthly income tax bill of 330 pounds. added together, you get a giant dent in the economy, a significant political challenge for the new prime minister. we aren't hearing much detailfrom either camp, we can do some calculations. it would cost the government an additional £18 billion. in the last cost of living support package, it was expected it across next year. —— lasted across. but if the increase in the cap could be scrapped

yesterday, the regulator ofgem announced an 80% rise in the energy price cap from october, taking the

ofgem has announced that changes to the energy price cap will be made every three months, rather thanity we are seeing in global energy markets, and this requires a different approach, taking it step—by—step, rather than making commitments over a longer period and in whatever commitment you make, they turn out to be inappropriate because market conditions have changed drastically. this is where ofgem's decisions coming from, being able to follow and trace rapid developments in the global energy markets. th and trace rapid developments in the global energy markets.— global energy markets. in terms of im act on global energy markets. in terms of impact on consumers, _ global energy markets. in terms of impact on consumers, many - global energy markets. in terms of impact on consumers, many might| global energy markets. in terms of i impact on consumers, many might be global energy markets. in terms of - impact on consumers, many might be a bit worried because of this shorter term of time period may affect budgeting? tt term of time period may affect budgeting?— term of time period may a

the price set by the regulator ofgem is rising by 80% in october.paid by direct debit is currently £1,971. in october, that will rise to £3,549. and prepayment metre customers will pay an extra £59 per year, taking the new typical bill on a metre to £3,608. and prepayment meter customers will pay an extra £59 per year, taking the new typical bill on a meter to £3,608. as charities warn about the impact of those rises on families, now real concerns that lives could be at risk and create further strains on the nhs. this is going to add further pressure on that health system and put it under even more pressure. we will get avoidable deaths unless we intervene now. labour has accused the government of failing to meet the scale of the national emergency, and said that millions could be left without support. the government says it will provide help, but pressure is going on the conservative party leader candidates to outline further plans. it's really important that people know they're not alone, that there are so many people out there facing the same cha

yesterday, the regulator ofgem confirmed a dramatic 80% rise in the energy price cap from october, takingnnual household bill to more than £3,500. here's marc ashdown. "help is coming." that's the message from the chancellor on rocketing energy bills. but when, how and who will receive it remains difficult to tell. in an interview with the daily telegraph, nadhim zahawi warns high bills could be here to stay for the next two years, and says while he's concerned about helping people on benefits, and pensioners, those on middle incomes will need help too. "if you're a senior nurse or a senior teacher on £45,000 a year," he says, "you're having your energy bills go up by 80%." "it's really hard." "we're looking at all the options." the energy price cap is set by the regulator 0fgem. it's rising by 80% in october. currently, a typical annual energy bill paid by direct debit is £1,971. in october, that will rise to £3,519. prepayment meter customers pay a little extra — a typical usage bill from october, then, will be £3,608. i am afraid the pain may not be over. the energy price cap is now re

emergency energy grants for smaller businesses, a reduction in vat from 20% to 5%, and more powers to ofgeme right fixed rate contracts. this bakery�*s customers will learn how much their incomes will be squeezed tomorrow, when a new household price cap is announced. the price cap isn't really a cap at all — it's the amount of money energy companies are allowed to charge a household that uses the average amount of gas and electricity. now currently, that's £1971. but on october 1st, that will change and tomorrow, we'll find out to what. experts estimate it could exceed £3500. now, the support on offer is £400 off all bills come october, with people on qualifying benefits eligible for a further £650. but that support was set when bills were expected to hit £2800 this october. we are going to be well above that and there are estimates that bills could exceed £4200 in the cold months of january. little wonder that people in plymouth today were so concerned. we were talking about how worrying it's going to be. yeah. because it's like, you know, nobody earns loads and loads of money, so if it do

that in the autumn we are going to have ofgem utility. what is your base case for that scenario? yael: at the moment we are factoring further increases in energy prices with the cap going up, but more or less -- well, just a little less than earlier on and inflation peeking in double digits, between 10% and 13%. stocks changing all the time and also factoring in a potential further help from the new government to target particularly those most vulnerable. guy: what are you factoring in? at the moment we don't know who the next prime minister is let alone the fiscal policy that will be put in place. what are you assuming? yael: in terms of government? guy: the government. yael: we are assuming at the moment it will not be an immediate major change in fiscal policy but additional support for households that need it, the most vulnerable that will cost an additional 11 billion. alix: if that is the case, that feels like that might imply not richie sunak. if we get and we continue this more austerity situation, particularly the bank of england winds up selling securities, what is the

those are regulated by ofgem. that is the idea behind the system.s— the system. so unless the government wants to _ the system. so unless the government wants to plough in billions of its own money into these things, you do have to _ own money into these things, you do have to spend capital expenditure not only— have to spend capital expenditure not only on the expansion of the network. — not only on the expansion of the network, but also maintenance and greening _ network, but also maintenance and greening of it as well. there has to be a review — greening of it as well. there has to be a review. the ft are talking about — be a review. the ft are talking about how _ be a review. the ft are talking about how the system needs to be reviewed — about how the system needs to be reviewed. it is not working as it should — reviewed. it is not working as it should. that is an interesting point to make _ should. that is an interesting point to make. but there is no free lunch here _ to make. but there is no free lunch here if_ to make. but there is no free l

it might help a little bit, but ofgem sets the price cap of how much energy suppliers can profit at 2%uss can do to change the fact that the whole self price of oil is spiralling out of control. on top of that, you've got uk energy policy across europe being pretty... we don't really have supplies almost at all. it's really terrible, so i don't know what on earth she's going to do. her hands are pretty tied, but she probably will have to hand out some sort of help to help people through the winter. but long—term, idon't help to help people through the winter. but long—term, i don't know what she's going to do. i'm not sure if she's in the ghettos —— if she knows either. brute if she's in the ghettos -- if she knows either.— if she's in the ghettos -- if she knows either. ~ . ., ., ,, ., knows either. we have had a kind of aral sis knows either. we have had a kind of paralysis of — knows either. we have had a kind of paralysis of this _ knows either. we have had a kind of paralysis of this conservative - paralysis of this conservative leadership race. do you think they need to look at t

sir keir starmer expected to say tomorrow the price cap should be stuck here in october, so ofgem does not have the power to raise the price cap from the current level of £1191. the plan was suggested in a meeting last week between the government and energy companies. the plan suggested by a couple of the bosses of energy companies that the price cap should be kept fixed and not go beyond the £1971 level from october. a fund should be set up. it would cost £50 billion. that is something that would cover the costs in the short term of the energy companies and over the longer term, over a period of say ten years, consumers would pay back through gradually increasing bills to basically diminish the immediate hikes. it was a plan that was apparently suggested to ministers backin apparently suggested to ministers back in april but currently the treasury is looking at is that possibility of a reduction of bills by £400 injanuary. that is when they are proposed to go beyond £4000. something that is absolutely exercising minds how to manage that and something also on the agenda of the two cont

here in the uk, where a new energy price cap will be announced this morning by the energy regulator ofgem

emergency energy grants for smaller businesses, a reduction in vat from 20% to 5%, and more powers to ofgemg the right fixed rate contracts. this bakery�*s customers will learn how much their incomes will be squeezed tomorrow, when a new household price cap is announced. the price cap isn't really a cap at all — it's the amount of money energy companies are allowed to charge a household that uses the average amount of gas and electricity. now currently, that's £1971. but on october 1st, that will change and tomorrow, we'll find out to what. experts estimate it could exceed £3500. now, the support on offer is £400 off all bills come october, with people on qualifying benefits eligible for a further £650. but that support was set when bills were expected to hit £2800 this october. we are going to be well above that and there are estimates that bills could exceed £4200 in the cold months of january. little wonder that people in plymouth today were so concerned. we were talking about how worrying it's going to be. yeah. because it's like, you know, nobody earns loads and loads of money, so if i

as soon as the announcement is made from ofgem, that crystallises the direct debits going up.evel we have been tracking. the real significance is the point in the year we are at in summer, at a point where energy usage is really no. i suspect this will get significantly much more difficult with higher levels of debt as we get into winter where you will see usage really spike. we are really worried about that in terms of implications for households and what it means if you are being pushed onto prepayment metres where there is a higher disconnection risk and everything else. this winter will be incredibly difficult for energy unless there is a much greater scale of government response thanis greater scale of government response than is currently on the table. earlier today the conservative leadership contender liz truss shared her strategy on how she plans to help people with the rising energy costs. i understand it is very, very difficult for people. people are facing higher fuel bills, higherfood bills. what i would immediately is reverse the national insurance increase, keep

and ofgem has said that it is possible for suppliers to raise direct debits in advance of the new capes kicking in. several energy companies have said that given the rising prices, the government need to offer more support. utilita say more of their customers have contacted them asking for help. we know that our extra care team has seen an increase in calls of around 140%. we put our extra care team in place to deal with the most vulnerable. and in most cases it's, "i haven't got any money." it is terrible to listen to some of the plights of those consumers, and it's only going to get worse. some energy companies are due to meet ministers today, to discuss measures to help with the cost of living. but it's been made clear that any big decisions on this will wait until a new prime minister is chosen. the chancellor has stressed that there is already money in place to help, but the pressure is rising... it used to be full in here of furniture and units and wardrobe and things like that. but i've had to sell all that, to try and keep up with the rising costs of living. ..before the price

the reason ofgem's spreadsheet _ difficult. the reason ofgem's spreadsheet lets _ difficult.works and 'ust the way the energy system works and just the _ the way the energy system works and just the gas— the way the energy system works and just the gas itself— the way the energy system works and just the gas itself that _ the way the energy system works and just the gas itself that comes - the way the energy system works and just the gas itself that comes into i just the gas itself that comes into our homes — just the gas itself that comes into our homes as— just the gas itself that comes into our homes. as well— just the gas itself that comes into our homes. as well as _ just the gas itself that comes into our homes. as well as that, - just the gas itself that comes into our homes. as well as that, we i just the gas itself that comes into . our homes. as well as that, we also use gas— our homes. as well as that, we also use gas to _ our homes. as well as that, we also use gas to create _ our homes. as well as that, we also use gas to create electricity. - our homes. as well

households in england, scotland and wales will see their energy bills soar by 80% after the regulator ofgem price cap — that's the maximum amount consumers on a standard variable tariff can be charged per unit. at the moment the average household is paying an annual bill of £1,971. in october that will jump to £3,519 a year — and almost £60 more if you're on a prepayment meter. and the price cap could go higher still. some analysts predict it will be more than £5,300 a year injanuary and then more than £6,600 in april. well, today's price cap announcementjust adds to the current cost of living crisis, with prices forfood and petrol already rising rapidly, and higher taxes and interest rates too. colletta smith reports. this is confirmation of the figures that so many households in britain had been dreading. i am that so many households in britain had been dreading.— had been dreading. i am terrified that when the _ had been dreading. i am terrified that when the winter _ had been dreading. i am terrified that when the winter comes - had been dreading. i am terrified that when the winter com

that's not the official numbers from ofgem, the regulator, who will provide a precise estimate relativelygive us a guide because a lot of people are anxious about this. yeah, in order of magnitude it looks like the situation is around £400 worse, give or take, than we thought when i announced the support earlier this year. now, that gives you a sense of the scale of what we are talking about extra. and then, we have to think about how do we split that up? what do we do for the most vulnerable people on the lowest incomes? what do we do for pensioners and what do we do for hard—working families, as this affects everybody. so, for pensioners who are watching, people like graham, you would intend, would you, to match what you did last time, to make up that 400 quid he's going to lose? so, what we did previously was when the bills were going up around £1200, pensioners were receiving about £850 of extra support and the way we were going to do that and the way i announced as chancellor, there's some universal support for everybody, which obviously pensioners benefit from. so, this autumn, for