You might have seen the phrase in the news, but what is it, and what does it mean to be in an ‘Energy Crisis’?
It means the price you pay for the fuel you use is going to increase significantly in the coming months.
Ofgem are the governing body for the sale of energy, and they manage a price cap which sets the maximum price energy companies can charge for every unit of electricity or gas you use. The price cap is not a limit on your total bill.
This price cap is expected to increase every 3 months going forwards in order to reflect the rising wholesale price of fuel. This is to prevent more energy companies from going bust, which usually results in a big price increase for consumers.
Households across the UK are going to be paying more for their energy than ever before, with 2 in 3 households spending 10% of their income on their energy bills.
If you’re worried about the crisis and what this means for your energy bills, please see all of the support we have available on this page.