British households be warned: you can expect your energy bills to literally skyrocket. Regulated energy prices will increase by 80% from October. Result: Amid a cost-of-living crisis, gas and electricity bills could rise further next year, Ofgem, the British sector regulator, announced on Friday, September 26.
The ceiling will go from 1,971 pounds (2,332 euros) per year per average household to 3,549 pounds (4,198 euros) from October. Thus, energy prices have almost tripled in one year for 24 million households – around 85% of the population – whose annual bill amounted to an average of 1,277 pounds (1,509 euros) in October 2021. The approximately 4 .5 million customers with a prepaid meter, the bill will increase by an average of 59 pounds (70 euros). And, given the current gas price trend, Ofgem warns that “Prices could worsen significantly throughout 2023”. ask the government for help “urgent” in the midst of a cost of living crisis.
“The increase reflects the continued rise in global wholesale gas prices, which began with the post-Covid-19 pandemic lockdowns; These prices were pushed to unprecedented levels as Russia slowly cut off its gas supplies to Europe.Ofgem argues.
Given that this threshold is calculated based on the average of wholesale gas prices during the previous months, experts expect it to rise to more than 4,000 pounds in January and up to 6,000 pounds in the spring according to the most pessimistic projections, which should driving inflation already by more than 10% a year in the UK.
“We are aware of the huge impact this price cap increase will have on households in Britain and the difficult decisions consumers will have to make.”commented Jonathan Brearley, CEO of Ofgem.
Ofgem CEO Jonathan Brearley explains why the price of energy has risen to £3,549, counting… https://t.co/DqbIPK2BVW
Ofgem clarifies that the limit foresees a ” modest “ benefit for suppliers in energy sales to homes, but that, “Unlike power producers, most distributors are currently not making a profit”.
Discounts for vulnerable households and retirees
Entrepreneurs, suppliers and unions ask for immediate action from the Government to avoid a scare “dramatic” for low-income households, already facing inflation of more than 10%, the highest of the G7 countries, while the British economy is on the verge of recession. According to the University of York, two-thirds of UK households will experience energy poverty by January 2023.
“We are seeing a situation of great stress among our clients. Average debt per customer increased by 30% to £167. I would say that about a third of our customers are short of fuel, and another 20% could be.”emphasizes Philippe Commaret, EDF’s commercial director for the United Kingdom, interviewed by Agence France-Presse.
The Minister of Economy and Finance, Nadhim Zahawi, also recognized that “The energy price cap announcements will cause many people stress and anxiety, but help is coming, with £400 off energy bills for all, £650 for vulnerable households and £300 in books for retirees..
“While Putin raises energy prices in retaliation for our support of Ukraine’s valiant fight for freedom, I work tirelessly to develop new aid.”he assured, just days before the announcement of the name of Boris Johnson’s successor in Downing Street.
The favorite to replace Boris Johnson, Thatcherite Liz Truss herself, had until then favored tax cuts over direct aid, which she regularly describes as “bandages”. On Friday, he appeared to soften his position, in a column published in the daily mail : “If I am elected Leader of the Conservative Party and Prime Minister, I will take decisive action when I get to Downing Street with immediate help, but I will also tackle the root of the problem. »
#United #Kingdom #regulated #energy #prices #increase #October