'Significant rise' in energy bill price cap coming, warns Ofgem

Jonathan Brearley, CEO of Ofgem, said there will be a “significant increase” in the price cap set by the regulator, which helps control gas and electricity bills in the UK.

“We can’t predict everything and, as we’ve seen, the wholesale market has been going up and down extremely quickly so we can’t fully predict what it will be,” he told BBC Radio 4’s Today program.

“But in view of the costs that are in the system, we expect a significant increase in April.”

However, Mr Brearley added that the current price cap will remain in place through April.

“We have no plans to raise the price cap until April,” he said.

Grant Shapps, meanwhile, said he did not know to what extent there could be “Russian intervention” when it comes to the gas wholesale crisis.

The transport minister was asked about a Times newspaper report alleging that ministers believe Russia is deliberately restricting gas exports.

Mr Shapps told Times Radio, “There is a massive global price spike and, as the world has awakened, the coronavirus is in a deep slumber, as is the price of many commodities.

“I don’t know to what extent there are Russian interventions. Fortunately, what I do know is 50% of our production domestically. Most of the rest comes from Norway.

“I think I am right when I say that only about 3% of the gas comes from Russia, so we are not directly affected, unless of course the global gas price has an overall impact.”

Russian President Vladimir Putin has blamed the EU for the gas price crisis – and the Kremlin has said it has the potential to increase gas supplies to Europe.

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