Millions of households in the UK are facing further increases in electricity and gas prices next winter. The latest forecasts suggest that energy price caps will almost double from October to £ 2,400 a year.
Calculations by the Financial Times energy consultant EnAppSys emphasize the looming nation Living cost crisis Wholesale gas prices have historically been trading at high levels and can be protracted.
Introduced in 2019 to protect the billing of approximately 15 million households who do not choose fixed-price transactions, the price cap is set to rise by more than 50% from an average of £ 1,277 in April to £ 2,000 a year. .. How to Use.
Ofgem, an energy market regulator, sets cap levels twice a year, with the next change after the April deadline. EnAppSys estimates that the cap could reach £ 2,300 to £ 2,400 later this year unless governments and regulators intervene to relieve consumer pressure using the latest market prices. I am.
The cost of gas contracts delivered in late 2022 has risen significantly in the last two months. This means that energy prices will remain high next year.
The decline in gas supply from Russia to Western Europe contributed to the first surge in energy prices last summer, exacerbating the pressure in January.
Earlier this week, the head of the International Energy Agency accused Moscow throttle Gas supply to Europe for use as leverage at standoffs between NATO and Moscow over Ukraine.The market is also approved Nord Stream 2 The pipeline to Germany, which Russia has shown to be a condition for increasing sales to Europe, will be further delayed.
“EnAppSys is right. It’s not just a short-term issue,” said Philippe Commeret, Managing Director of Customers for EDF Energy, the UK’s fourth-largest energy supplier. “Immediate support for our customers is still important for the surge expected this winter and April this year, but it’s not the only need for change.”
Economists have warned that the cost of living crisis from April is imminent, with higher energy prices raising national insurance and income taxes and inflation reaching their highest levels in the last decade.
The minister has been Consideration of remedies You can reduce customer charges and increase support for vulnerable households, such as reducing the value-added tax rate by 5% on energy charges and government-sponsored loans to suppliers. Reductions in the so-called “green” tax on electricity prices that subsidize renewable energy projects are also being considered.
Ofgem plans to set a price cap level for April on February 7th.
The EnAppSys analysis is consistent with some energy supplier estimates shared privately with FT. One senior industry source said next winter’s cap could reach £ 2,600, based on current and future energy prices.
Phil Hewitt, director of EnAppSys, warned that the wholesale pricing period used to calculate the price cap from October is still “6 months”, during which prices may fall.
However, even if wholesale gas prices stabilize or fall, “it is likely to stay higher than in the past,” he added, adding that domestic energy prices will remain “higher” for consumers than before. Added.
Charity Age UK warned Thursday that rising energy costs could lead to a “national emergency” for older people, saying that many are already endangering their health. Distribution of their heating..
In an analysis by EnAppSys, Peter Smith of the National Energy Action, a fuel poverty charity, said, “Without a series of proportional and ambitious interventions. [by government] The misery caused by cold homes can become commonplace over the years to come. “
Dale Vince, founder of green energy supplier Ecotricity, called for a public investigation on Friday to blame the combination of inadequate regulation and a loose approach to supply security.
“We need to properly investigate the roots of this crisis, learn from mistakes, and help rebuild energy markets to protect ourselves from future shocks,” he said.
UK homes are facing the problem of fresh energy when the price cap reaches £ 2,400 this year.
Source link UK homes are facing the problem of fresh energy when the price cap reaches £ 2,400 this year.