UK CONSUMERS’ ENERGY BILLS RISE AS PRICE CAP LIFTS

Fri 01 October 2021:

Due to increased global gas costs, millions of Britons’ energy prices began to increase on Friday, in line with a 12-13 percent increase in the cap on the most commonly used tariffs.

“Today, the latest price cap, which we announced back in August, is set at 1,277 pounds ($1,721.01). This is the amount that an average household will pay for both gas and electricity,” Ofgem’s deputy director for retail, Anna Rossington, said in a video posted on Twitter.

The cap on electricity and gas bills came into effect in January 2019 and was aimed at ending what former British Prime Minister Theresa May called “rip-off” prices charged by energy companies.

The latest hike followed earlier this year’s surge in energy costs, and the ongoing “unprecedented” spike in worldwide gas prices in recent weeks has put financial strain on suppliers, according to Rossington.

Prices have reached new highs, and a number of smaller British suppliers have gone out of business.

“Around 15 million households are covered by the energy price cap and if your supplier goes out of business, this is the tariff that you’ll be transferred to with your new supplier,” Rossington said.

($1 = 0.7420 pounds)

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