This Friday the 80% rise in energy prices in the United Kingdom has been confirmed . The British regulator, Ofgem, recalculates each quarter the maximum annual amount that supply companies can charge consumers and, in this latest revision, the cap goes from 1,971 pounds per year to 3,549 pounds per year (2,325 euros and 4,202 euros per year , respectively). Given the exorbitant rise, Boris Johnson has promised to increase aid to households, focusing on the most vulnerable.
The new limit announced today will take effect on October 1 and will run until December 31. Afterwards, the revisions can continue upwards, since, due to price volatility, the regulator now updates the figures every three months and not every half year. Already in the previous calculation, prices rose by 54% and everything indicates that the next adjustments will follow the same path.
The latest revision implies that the maximum price that British households will pay for their bill is 350 euros per month, while currently and until October, that amount is 194 euros per month.
Higher energy prices continue to fuel the cost of living crisis in the UK and also increase the outlook for inflation . Everything, in a context in which the British Prime Minister, Boris Johnson, is on his way out and his replacement continues to be outlined.
In that context, Johnson has said that new measures will be announced in the coming days to protect those who have difficulty paying their energy bills. In addition, he has proposed that financial aid be allocated only to vulnerable households and not to all, as is the case to date.
The British prime minister has also clarified that the aid that had been previously announced will have to increase “obviously” with more money, according to the agencies. Johnson has less than two weeks left on the job.
The British are very aware of the proposals that are being announced by the electoral candidates , Rishi Sunak and Liz Truss. If elected, Sunak defends that the measures will be aimed at the most needy and that he will not only protect them with the ceiling on the bill, but with direct financial aid. Truss has not specified, but she has reiterated the commitment to work on price stability and consumer safety.
On the other hand, the limit established by Ofgem affects exclusively families, so companies are facing energy costs without limits being placed on their bills. In the United Kingdom, gas accounts for 40% of energy consumption, to which is added the country’s dependence on purchases of surplus European electricity.