UK energy price hike amid cost of living crisis

Spiking UK energy prices amid cost of living crisis

Regulated energy prices will increase by 80% from October, according to the regulator Ofgem.

Regulated energy prices will rise by 80% from October in the UK and gas and electricity bills could rise further “significantly” next year in the midst of cost of living crisis.

The authorized price cap will be reduced from 1971 pounds ($3024.45) per year per average household to 3549 pounds ($5445.16) from October, regulator Ofgem said on Friday.

The rise reflects the surge in global wholesale gas prices since the post-pandemic deconfinements, and pushed to record highs by limitations in Russian gas supplies to Europe since the end of the pandemic. start of the war in Ukraine, argues Ofgem.

Gas prices have in recent days approached their historic highs reached at the start of the Russian offensive in Ukraine and Ofgem warns prices could get significantly worse in 2023.

As the price cap is calculated on the average of wholesale gas prices over the previous months, experts expect it to be raised to more than 4,000 pounds ($6,136.38) in January and up to 6000 pounds ($9204.58) in the spring.

Ofgem, employers, suppliers and associations call for immediate government action to avoid a dramatic shock for low-income households, already facing double-digit inflation, the highest in the G7 countries, while the British economy flirts with recession.

Nearly two-thirds of UK households are at risk of fuel poverty by next year, according to the University of York.

We are seeing a situation of great stress among our customers, underlines Philippe Commaret, commercial director of EDF for the United Kingdom, interviewed by AFP.< /p>

He adds that some households take desperate and dangerous measures for them, such as giving up heating or unplugging their refrigerator.

With many precarious homes dependent on rechargeable meters, we left to see thousands [of homes] with sudden power outages, says think tank Resolution Foundation.

Diane Skidmore, a 72-year-old pensioner who lives in south London council housing on £600 ($919.90) a month, has seen her monthly bill drop from £25 to £45 in just over a year ($38 to $69). She has just received a letter from her supplier asking her to plan for future debits of 70 pounds ($107.37).

Everyone is going to have a hard time, she told AFP, saying she intends to resort to sweaters and blankets to minimize her consumption.

She is worried about her neighbors whose meter works on prepayments: they are always in debt, and as a result, they do not pay their rent except for electricity and electricity. throttle are off.

Economy Minister Nadhim Zahawi has promised help is coming, with 400 pounds [$613.52] off energy bills for all, 650 pounds for vulnerable households and 300 books for pensioners.

Retiring Conservative Prime Minister Boris Johnson has left this politically sensitive issue to the next head of government, whose name will be revealed on September 5.< /p>

The favorite to replace him, the very Thatcherite Liz Truss, had until then favored tax cuts more than direct aid, which she describes as bandages.

She appeared to soften her stance on Friday, in a column in the Daily Mail, saying that if she enters Downing Street she will take immediate relief measures, but will also tackle to the roots of the problem.

It's time for the government to stop protecting the profits of the oil giants and start protecting the people, the director of energy poverty association NEA told Sky News.

The environmental NGO Greenpeace is calling for energy savings to be put back at the heart of government policy, including the deplorable home insulation in the UK, and to turbocharge investment in renewables that have become cheaper than gas.

The Don't Pay movement had 115,657 members engaged to stop paying their electricity bills from October if they are not brought down to an affordable level, and provided they have 1 million signatories.

The organization, which is calling for demonstrations outside the Ofgem office on Friday, has installed a banner on the bridge in front of the park. ment, which reads: Let no one be cold or hungry this winter. Pledge to strike bills, according to a photo posted on Twitter.

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