Energy price cap to rise by 80% from October to Britanniaannounced today the UK’s competent sector regulator Ofgem.

Based on the current trend, Ofgem warned that “prices could deteriorate significantly during 2023” and urged the UK government to provide emergency support amid the cost of living crisis.

The cap will rise from £1,971 a year for the average family to £3,549 from October.

“This increase reflects the continued rise in global wholesale gas prices, which began with the lifting of lockdowns after the COVID-19 pandemic and reached an all-time high when Russia cut off gas supplies to Europe,” Ofgem said.

Since this cap was calculated based on the average wholesale price of natural gas in previous months, experts expect it to rise to more than £4,000 in January and to £6,000 in the spring, according to the most pessimistic forecast, which is expected to spur inflation which already exceeds 10% year on year in the UK.

“We are aware of the huge impact this price cap hike will have on households across the UK and the tough decisions consumers will have to make,” said Ofgem CEO Jonathan Brearley.

Ofgem specified that the cap provides a “modest” profit for energy providers from selling power to households, but that “unlike electricity producers, most electricity distributors currently do not make a profit.”

Economy and Finance Minister Nadeem Zahavi also acknowledged that “the announcements of capping energy prices will cause stress and anxiety for many people, but help comes in the form of a £400 rebate on electricity bills for everyone, £650 for vulnerable households and £300 for pensioners.”

“At a time when (Russian President Vladimir) Putin is raising energy prices to avenge our support for Ukraine’s courageous fight for freedom, I am working tirelessly to provide new reinforcements,” Zahavi assured today, days before the announcement. Boris Johnson’s successor. on Downing Street.

The new UK prime minister must take urgent action to address rising energy prices, Ofgem’s CEO also said, warning that prices are likely to rise further.

“The Prime Minister and his ministerial team must act urgently and decisively to solve this problem. All of us, together with the government, will have to face this problem and solve it on behalf of customers,” Brearley told BBC Radio after Ofgem’s statement.

Source: APE-MPE, AFP, Reuters.