Octopus Energy’s Greg Jackson argues that spreading the cost of high gas prices over a number of years is the best way to deal with price spikes. In an email to his customers, he said it was the only option able to “make a real difference to all customers”. Mr Jackson believes that spreading the cost over a longer period of time would protect consumers by helping them avoid exorbitant increases to their energy bills
This comes as the ongoing energy crisis has seen multiple firms thrust into administration across the UK.
Coupled with the rapidly plummeting winter temperatures, household energy bills are set to rise in the coming months.
Ofgem is expected to announce in early February that the Energy Price Cap will rise again on April 1, 2022.
Costs could rise by as much as 50 percent for some households, according to statistics from trade body EnergyUK.
Analysts have warned that the UK’s energy price cap looks likely to rise by more than £700 in April.
In the email, Mr Jackson wrote: “Spreading the cost of this sudden spike over several years will allow us to make the imminent April rise much, much smaller – more like £12 per month – and adjust prices to gradually cover the cost over time.”
Energy experts suggest Europe could face electricity blackouts over the coming months if average temperatures fall.
According to analysts at the investment bank Goldman Sachs, while Europe has enough gas supplies stored up to get through winter, a drop in temperature could see storage levels fall to record lows.
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