UK energy prices rise 54% as regulators approve past price cap increases


Millions of British are preparing for a surge in energy prices after the UK energy regulator Ofgem approves a record increase in price caps.

Ofgem said the regulated price cap, which is reviewed every six months, has historically risen 54% to £ 1,971 a year ($ 2,683) from April, the same month that taxes are raised in the UK. I did.

Ofgem CEO Jonathan Brearley said the energy market hit a record high in Europe last year as global gas prices skyrocketed.

“The energy market faces major challenges due to the unprecedented rise in global gas prices once every 30 years. Ofgem’s role as an energy regulator is under price caps by energy companies. You can charge a fair price based on the true cost of supplying electricity and gas, “Brearley said.

Approximately 22 million households across the UK are expected to be affected by the cap increase that applies to households applying default rates for energy suppliers.

The British government has announced on Thursday that it will provide a series of financial support measures worth around £ 9 billion ($ 12 billion) to get out of the energy surge.

UK Treasury Minister Rishi Sunak said the support scheme would help about 28 million households bear the burden of rising energy costs.

“It’s wrong and dishonest that I stand here and pretend I don’t have to adapt to paying higher prices. But what we can do is that the price increase is initially small and long. By spreading it over time, we’re out of a serious price shock for millions of families, “Sunak told a member of the British Parliament.

Under the scheme, British households Will be provided There is a £ 200 ($ 272) prepaid discount, which will be repaid in installments over a later 5 years. Households within a certain tax rate will also receive a £ 150 ($ 204) refund that they do not have to repay. In addition, £ 144 million ($ 196 million) will be allocated to help low-income and vulnerable individuals.

The average UK household will increase their energy bills by £ 700 ($ 953), but the majority of households expect support measures to reduce them by £ 350 ($ 476).

PA Media contributed to this report.

Tom Ojimek

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Tom Ozimek has a broad background in journalism, deposit insurance, marketing and communication, and adult education. The best writing advice he has ever heard is from Roy Peter Clarke.