- By Vishara Sri Pasma & Faisal Islam
- bbc news
Octopus Energy’s president says bills will be lower this April because providers have already paid for gas.
Speaking to the BBC at the World Economic Forum in Davos, CEO Greg Jackson said the new energy price cap would be “several hundred pounds lower” than current levels.
He added that gas supplies were secured ahead of the winter season.
This led to lower wholesale prices, Jackson said.
His comments come as millions of people are set to see their bills rise, with the January statement reflecting current price caps that came into effect at the beginning of the month.
Energy price caps limit the amount that suppliers can charge for each unit of energy you use in your home.
Energy regulator Ofgem said the average household’s annual bill when using dual fuel would rise by £94 in January, from £1,834 to £1,928.
Fueled by a warm winter, gas storage levels in Europe exceeded expectations.
Research firm Cornwall Insights predicts that the average household’s annual energy bill will fall by £268 to £1,660 in April due to lower wholesale prices.
Asked about the potential impact of tensions along the crucial Red Sea route, Mr Jackson said there was plenty of reason to worry about tensions and “big problems in the world”, but he was still confident prices would come down. .
“Of course there are so many problems in the world, but short-term energy is There’s definitely a problem.”Prices do seem to be going down and stabilizing. ”
Oil prices rose 4% after the US and UK launched attacks in Yemen over recent attacks on ships by Houthi rebels in the Red Sea.
Brent oil prices hit $80 (£63) a barrel for the first time this year, as Iran-backed rebels vowed to retaliate against military action by Western countries.
Although prices have risen, they remain below the highs reached when Russia invaded Ukraine.
The British government is concerned that continued attacks on ships in the Red Sea could weigh on the UK’s economy, where growth remains fragile.
Rising energy prices risk accelerating inflation just when it has begun to slow. Meanwhile, the cost of transporting containers by ship is rising, and companies may choose to pass this cost on to consumers.
Chancellor Rishi Sunak said the attack would cause “major disruption to vital trade routes”. [higher] Product price”.