Why gas and electric prices are going up – the rise in energy bills explained

The UK’s energy price cap, the maximum amount a utility company can charge an average customer per year for the amount of electricity and gas they use, has just been reviewed and risen by 54 per cent, meaning a steep rise in household bills this spring.

From 1 April, the cap will rise from £1,277 to £1,971 for a household on average usage. That means a £693 per year increase for the average customer.

Prepayment meter customers will see an even greater increase of £708 from £1,309 to £2,017.

Jonathan Brearley, chief executive of the energy regulator Ofgem, said: “We know this rise will be extremely worrying for many people, especially those who are struggling to make ends meet, and Ofgem will ensure energy companies support their customers in any way they can.”

The last review on 6 August 2021 was itself a rise of 12 per cent or £139 on six months earlier but this latest development means more bad news for the consumer when the cost of living is already spiralling, with inflation expected to rise from its current level of 5.4 per cent to more than 7 per cent.

Without financial help, some two million more people are forecast to be plunged into fuel poverty this year, meaning 6 million people in total would be struggling to heat and power their homes.

Charities have warned of an “inevitable” rise in destitution as people on the lowest incomes become unable to afford other essentials such as adequate food and clothing.

Chancellor Rishi Sunak has since announced…

READ FULL STORY AT independent.co.uk

ALSO READ   Paris attacks: defendant says he changed his mind at last moment

Leave a Comment