Families face an extra £800 energy bill rise in October, former NPower boss warns

1 April 2022, 08:20 | Updated: 1 April 2022, 08:22

Former energy boss warns bills could skyrocket in October

By Sophie Barnett

Energy bills could increase by another £800 when the price cap is reset in October, the former CEO of NPower has warned.

Listen to this article

Loading audio...

Paul Massara told LBC's Nick Ferrari at Breakfast it's a "very concerning time" for households facing soaring energy bills and a cost of living crisis, as he issued a stark warning that bills will keep creeping up.

The former NPower boss told Nick: "The reality is that the price cap has protected people through the winter period, but now it has come back and it's biting.

"A £700 to £2,000 rise is incredibly large and for those people most in need, those people most vulnerable, who are trying to budget day by day essentially, this is going to be a massive shock."

He added: "And what's worse is that the forward look seems to be that in October when the cap is reset again we could be anywhere between another £400 to £800."

He stressed that the Government "need to do more", adding what they have done "isn't well targeted enough".

"Let's be clear, the £200 rebate what they call it, is a loan," he explained.

"That loan means your bill is slightly lower today but has to be paid off over the next five years."

Read more: Cost of living crisis: Brits wake up to soaring energy bills as MPs get £2k pay rise

Europe entering 'unprecedented times' in energy crisis

He added that those people living "day-to-day" will be worst affected.

The energy price cap rose by 54% on Friday morning, meaning households face much higher costs for heating and powering their homes.

This is an increase by £693, as Ofgem, the regulator for the energy sector, allowed bills to climb to £1,791.

Thursday saw a number of energy websites crash as millions of people tried to submit their meter readings to avoid them being wrongly estimated for their next bill.

Read more: 'I didn’t think it would be this bad': Martin Lewis warns energy bills could exceed £2,500

E.ON, British Gas and EDF Energy's websites were affected by "unprecedented demand".

The squeeze comes amid soaring inflation, compounded by the Russian invasion of Ukraine.

The Government will point to a package of support announced by Chancellor Rishi Sunak but already members of his own party have suggested he will need to announce more help.

Speaking to LBC on Wednesday ahead of the new price cap rise, money saving expert Martin Lewis said the rise is "catastrophic".

"I didn't think it was going to be anywhere near as bad as this," he admitted.

"I thought it was just going to be bad, I didn't think it would be catastrophic."

More Latest News

See more More Latest News

Nigel Farage in a heated on-air exchange on LBC this morning

'This is how ordinary people speak': Farage defends Reform UK candidates after anti-Islam and far-right comments exposed

Reform UK candidate Steve Chilcott said ‘Islam and Nazis are the same thing’ in comments in 2017

Reform candidate rants that ‘Islam and Nazis are the same thing’ in unearthed footage

'PM’s don’t always get decisions right': David Cameron defends Rishi Sunak’s handling of D-Day commemorations

'PM’s don’t always get decisions right': David Cameron defends Rishi Sunak’s handling of D-Day commemorations

Exclusive
Nigel Farage has vowed never to 'surrender to the mob'.

'I'm not going to surrender to the mob': Farage blames ‘angry left’ and social media after milkshake attacks

Live
Labour Leader Keir Starmer will unveil the manifesto in Manchester

General Election LIVE: Labour set to launch manifesto with 'wealth creation' at its heart

A patient being treated for prostate cancer on the NHS

Over 380,000 cancer patients have faced delays since 2015, as NHS last met treatment time target over 8 years ago

Wayne Lineker has broken his silence after the attack

Wayne Lineker, 62, breaks silence with birthday message to son after being knocked out by single punch in Ibiza brawl

Musk SpaceX Lawsuit

Fired SpaceX employees sue company for wrongfully firing critics of Elon Musk

Former Spandau Ballet singer Ross Davidson has appeared in court accused of rape

Ex-Spandau Ballet singer accused of filming himself raping women while they slept

Argentina Congress

Senators approve president’s bills after violent protests in Argentina

Jonathan Collins and Neil Moon

Mystery as two pest control workers found dead with frozen faces and hands in crawl space of chicken factory

Both teacher have now resigned

Two teachers resign after ‘offering foursome' and sharing lingerie pics with student on school trip

Labour has pledged to be the party of 'wealth creation'

Labour Party promises 'wealth creation' will be 'number one priority' in election manifesto

Rishi Sunak and Keir Starmer took part in a debate on Wednesday evening

Keir Starmer won leaders debate despite being likened to 'political robot' as Rishi Sunak grilled on 'broken promises'

Joe Biden shakes hands with Volodymyr Zelensky at a table with their nations' flags in the background

Biden and Zelensky to sign security agreement between US and Ukraine at summit

The ongoing General Election campaign has made no difference to how most people will vote, a fresh poll has revealed

General Election campaign has made no difference to how most people will vote, poll reveals