UK home energy bills rise 80% in October

Ofgem chief executive Jonathan Prairie said the rise would have a “tremendous impact” on households across Britain, with another increase likely in January, reflecting significant price pressures in energy markets.

“It is clear that the new prime minister will need to do more work to address the impact of the upcoming price increases in October and next year,” Brierley said.

Rising wholesale energy prices are affecting countries all over the world.

As European governments sought to conserve gas, increase storage and reduce bills, the British government was paralyzed by the race to replace Boris Johnson as prime minister on Sept. 5.

The two candidates clashed over how to respond. Analysts have dismissed their proposals, which include suspending environmental duties or reducing sales tax, as too little to avoid the unprecedented damage to household budgets.

Finance Minister Nadim Al-Zahawi said on Friday that he is working on a plan in preparation for the next government, although he acknowledged that the new price cap would cause tension and anxiety for millions.

Ofgem said it did not provide a forecast for January when a new cap will take effect because the market remains very volatile, but said the winter gas market means prices could worsen significantly through 2023.

Energy prices have risen sharply this year after wholesale gas and energy prices, which had already risen after the outbreak, rose in the wake of Russia’s invasion of Ukraine and Moscow’s move to curtail gas exports to Europe.

The average new electricity and gas bill for 24 million households means energy bills will almost triple from October last year when they averaged £1,277, a key factor in driving inflation to a 40-year high.

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