UK electricity bills to rise by 10%

Electricity bills for UK households will rise by 10% in October after regulator Ofgem raised the energy price cap in response to higher wholesale electricity costs for suppliers.

“We know that this increase in the price cap will be extremely difficult for many households,” Ofgem chief executive Jonathan Brearley said. quote by the Financial Times.

“Anyone struggling to pay their bill should make sure they have access to all the benefits they are entitled to, particularly pension credit, and contact their energy company for further help and support.”

October’s cap increase is the first since January and will see the average annual electricity bill for a British household rise to about $2,250 from about $2,055. No explanation was given for the increase in wholesale electricity costs that led to the cap increase.

Earlier this month, a consumer advocacy organization ADVISED that up to a quarter of UK households could be forced to turn off their heating and hot water this winter following Ofgem’s price cap review. Estimated growth was lower than actual at 9%.

The Citizens Advice report said the percentage of those worried about their electricity affordability was substantially higher among households with children, where the percentage was 31%, and low-income households, where 39% were worried about the upcoming heating season.

The consumer advocacy group also reported that 48 percent of respondents to its survey said they would need to turn down the heat or turn it off to survive the winter financially. Another 34% said it would be difficult for them to afford food, mortgage payments or childcare this winter because of higher electricity prices.

Meanwhile, the Labor government canceled about $2 billion in fuel subsidy payments to wealthier pensioners in a bid to plug a $29 billion funding hole in the budget.

By Irina Slav for Oilprice.com

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