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UK household energy bills set to soar 80% in October

UK energy bills will rise by 80% to an average of £3,549 ($4,188) a year from October, regulator Ofgem said on Friday, calling it a “crisis” that needed to be resolved by government action. urgent and decisive.

Ofgem CEO Jonathan Brearley said the rise would have a “massive impact” on households across Britain, and another rise was likely in January, reflecting significant price pressure in markets for energy.

He said Britain’s next prime minister – Liz Truss or Rishi Sunak – needed to take immediate action once in office next month.

“It is clear that the new prime minister will have to do more to deal with the impact of the price increases coming in October and next year,” Brearley said.

“The response will have to match the scale of the crisis we have before us.”

Rising wholesale energy prices are hitting countries around the world.

As European governments have sought to conserve gas, increase storage and cut bills, the UK government has been paralyzed by the race to replace Boris Johnson as prime minister on September 5.

The two candidates clashed over how to react. Their proposals, which include suspending environmental levies or cutting a sales tax, have been dismissed by analysts as too little to avoid the unprecedented hit to household budgets.

Finance Minister Nadhim Zahawi said on Friday he was working on a plan to be ready for the next government, although he acknowledged the new price cap would cause stress and anxiety for millions of people.

Ofgem said it was not giving projections for January when a new cap comes into effect as the market remained too volatile, but it said the winter gas market means prices could worsen “significantly”. until 2023.

Energy bills have soared this year after wholesale gas and electricity prices, already on the rise after the pandemic, jumped following Russia’s invasion of Ukraine and Moscow’s decision to reduce gas exports to Europe.

The new average electricity and gas bill for 24million households means energy bills will have almost tripled compared to October last year, when they averaged £1,277, a major driver of inflation reaching a 40-year high.


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