UK home energy prices up 80% by October: regulator

UK households will face an 80% rise in energy prices by October, UK energy regulator Ofgem has warned.

Ofgem announced on 26 August that the energy price cap for some 24 million households in England, Scotland and Wales will rise by 80.06% on 1 October, increasing the average household’s annual bill from £1,971 to £3,549 ($4,200). ) announced that it would be

“This rise is a continuation of global wholesale gas prices that began to surge as the world unraveled from the novel coronavirus pandemic, and further climbed to record levels as Russia slowly cut off gas supplies to Europe. It reflects a strong rise,” the regulator said.

“Prices could deteriorate significantly through 2023,” he warned.

The Bank of England expects inflation to exceed 13% by the end of the year on rising gasoline prices, and Citigroup warned this week that it could reach 18.6% in January.

Ofgem CEO Jonathan Brearley has urged the incoming prime minister and new cabinet to “provide additional and urgent responses to the continued high energy prices.”

he said:

“We are working with ministers, consumer groups and industry on a range of options for the next prime minister that require urgent action. It has to match the scale.”

“Stress and Anxiety”

The government of Boris Johnson, who is set to step down as prime minister on Sept. 6, has offered immediate additional support as major fiscal decisions have been postponed until either Foreign Minister Liz Truss or former Prime Minister Rishi Sunak are in Downing Street. I refused. After the Conservative leadership election.

Prime Minister Nadim Zahawi. He said the energy price cap hike would cause “stress and anxiety” in people, but the government was working to provide more support to households.

“(Russian President Vladimir) Putin is raising energy prices in retaliation for helping Ukraine’s valiant fight for freedom, but I will do everything in my power to develop more support options. there is,” he said.

“This means that the incoming Prime Minister can do everything in his power to provide assistance to those most in need as quickly as possible.”

Mr Truss, now the frontrunner in the Conservative leadership race, told party members on August 25 that he would take “decisive action” to provide “immediate support” if he became prime minister. .

At an election rally in Norwich, she also pledged to “fix the problems at the heart of this energy crisis at its source” by boosting domestic supplies “radically”.

PA Media contributed to this report.

Alexander Chan