The costs of gas and electricity are regulated in Great Britain by a price cap and adjusted quarterly to the market situation.
(Photo: Getty Images)
London Consumers in the UK must brace themselves for a huge jump in gas and electricity prices in October. Annual energy bills for the average UK household are allowed to rise by 80 per cent to £3549 (€4187). This was announced by the state regulatory authority Ofgem on Friday morning.
The costs of gas and electricity are regulated in Great Britain by a price cap and adjusted quarterly to the market situation. Ofgem boss Jonathan Brearly said: “We expect that prices will continue to rise in winter.” He did not want to commit himself to a number. Energy agency Auxilione forecasts that prices could climb to more than £6,000 per year for an average household by April 2023. This means that the costs for electricity and gas have increased almost fivefold within a year.
Brearly attributed the jump in prices to the war in Ukraine and to the fact that Russia was gradually turning off the gas supply in response to the West’s economic sanctions. “Gas prices today are 15 times higher than before the crisis”, said the UK price watchdog on market prices. It is now up to the new prime minister to mitigate the impact of soaring prices on consumers.
British Foreign Secretary Liz Truss, who is considered the favorite to chair the ruling Conservative Party and thus to succeed Prime Minister Boris Johnson, is under pressure to act.
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Under pressure from the public, Truss has now apparently changed its previously negative stance on direct financial aid. British media reports unanimously that they are preparing a multi-billion dollar aid program that is primarily intended to help low-income families. The decision on the new prime minister will be announced on September 5th.
More: UK Inflation – Many households are at risk of falling into ‘fuel poverty’.