The ceiling for British households will rise from the current 1,971 pounds (about $2,325) paid a year by a middle-income family to 3,549 pounds ($4,180), Ofgem announced, warning that, taking into account the current trend, “prices could worsen considerably in 2023”.
“The rise reflects the continued progression of global wholesale gas priceswhich began with the lack of confidence after the pandemic of Covid-19and were pushed to record levels when Russia slowly cut off their gas supplies to Europe“, stated the body.
This tariff ceiling in the United Kingdom is calculated according to the average of wholesale gas prices in previous months. Experts expect this limit to exceed 4,000 pounds ($4,730) in January and up to 6,000 pounds ($7,096) in the spring, according to the most pessimistic projections.
In the last days the price of gas touched historical levels he reached early in the Russian offensive in Ukraine.
“We are aware of the massive impact this rate cap hike will have on households across the UK and the difficult choices consumers will have to make,” he said. Jonathan BrearlyCEO of Ofgem.
The threat of “energy poverty”
Ofgem, employers, suppliers and associations urge the UK government to take immediate measures to avoid a “dramatic” situation in the most modest households, which already have to face an inflation of 10%, the highest in the countries of the G7.
According to University of Yorknear Two-thirds of British homes will be under threat of energy poverty starting next year.
“We observe a situation of great stress in our clients. Around a third are in a situation of energy precariousness and 20% more could be” soon, he points out Philippe Commaretcommercial director of the French electricity company EDF for the UK, contacted by AFP.
Some households are taking desperate measures, according to this official, such as Give up the heat or unplug the fridge.
Social assistance, without great effects
Diane Skidmore, a 72-year-old pensioner who lives in social housing in south London on 600 pounds ($710) a month, has seen her monthly bill jump from 25 to 45 pounds ($29 to $53). And she has just received an email from her supplier announcing that her amount will reach 70 pounds ($82).
“Everyone will have problems,” he tells AFP, explaining that he plans to wrap up warmer to reduce his consumption.
The Minister of Economy, nadhim zahawiHe promised that “help is coming, with 400 pounds ($473) off energy bills for everyone, 650 pounds ($768) for the most vulnerable households and 300 pounds ($354) for retirees.”
The United Kingdom is waiting to know the name of its new head of government as of September 5, replacing Boris Johnson: the current foreign minister, Liz Trussor former finance minister Rishi Sunakwho are vying for the leadership of the Conservative Party.
Truss, the favourite, opts for a tax reduction strategy rather than direct aid, which she describes as “patchwork”.
Source: Ambito
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