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Energy Bills Could Hit £6,552 in April
Thanks to the omni-crisis in the energy sector – Net Zero, Russian sanctions, lack of gas storage, inadequate investment in nuclear – the U.K. price cap is predicted to climb to £6,522 by next April. MailOnline has more.
Consultancy Auxilione said the price cap will be three times the current limit of £1,971-a-year – and £1,000 more than what was warned of just yesterday by another energy experts as it bases its forecast on Monday’s gas price.
Gas supplies – which the U.K. depends on for much of its energy – has been affected by Russia closing the Nordstream 1 gas pipeline for three days for unscheduled maintenance.
Though the UK does not depend on Putin’s gas exports, this raises the global price of gas which went up to £250 per megawatt hour on Monday.
British households are already reeling from a global fall in the supply of gas in the market last year which has sent energy bills skyrocketing, sparking a cost-of-living crisis, alongside inflationary pressures that have raised food prices.
Auxilion said that it believes the price cap, which will be announced for October on Friday, will be £3,576 from October, hitting £5,066 in January and then £6,552 in April.
On Monday, energy consultancy firm Cornwall Insight said gas and electricity bills said they expect bills to hit £5,300 in April price.
Today, EDF’s boss warned that families face a “dramatic and catastrophic” winter if the government does not provide help now as he said half of U.K. households could be in fuel poverty in January as a result of rocketing energy prices.
His comments came as the National Grid prepared to hold an exercise to test the resilience of the U.K.’s systems in the event of a gas supply emergency.
Experts have also warned of a ‘security of supply issue’ in the energy sector as almost 40% of the UK’s electricity was generated last year by gas.
However, No 10 told the BBC there is no reason to panic and households do not have to cut back on their energy use.
It also comes as research by Friends of the Earth, mapped the areas in the UK that will face the worst financial hardship as a result of unaffordable energy costs.
Worth reading in full.
