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United Kingdom energy bills set to increase up to 80 % since October

The prices of energy in the United Kingdom are set to increase by 80 percent, putting further pressure on households already staggering under the cost of living crisis. On Friday, the United Kingdom’s energy regulator mentioned that it would raise its cap on consumer energy bills from an average of £1,971 a year to £3,549.

The price caps limit what energy suppliers can charge customers for their electricity and gas bills in the United Kingdom. The increase follows a recalculation by the government office for gas and electricity markets-Ofgem, to reflect the changing market prices and industry costs.

Moreover, the latest price cap will be applicable to around 24 million households. The 4.5 million households on prepayment plans are now facing a rise from £2,017 to £3,608.

The chief executive of Ofgem-Jonathan Brearley, mentioned in the statement, “This will be devastating for many families,” Looking ahead to early next year, Brearley asserted, “the difficult news I have to give today is that prices look like they are continuing to rise.”

Along with this, the consumers in the United Kingdom and Europe are being hit by massive hikes in energy prices stoked by the war in the war-torn nation. Gas prices have increased to record levels throughout the year as demand has intensified, even as supplies have dropped drastically due to a decrease in gas imports from Russia.

Earlier in the month of August, Ofgem declared that it would recalculate the cap every three months instead of every six months due to the volatility in the current market.

The inflation rate in the United Kingdom increased to 10.1 percent in the previous month, the fastest rise in 40 years. The Bank of England has mentioned in the statement that inflation could peak at 13 percent in the month of October, while a report from major financial services group Citibank had even more sombre predictions, saying the rate could go as high as 18 percent early next year.

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