UK: Household energy bills jumps 80 percent to over $4,000 from October


From October, British energy bills will jump 80 per cent to an average of 3,549 pounds a year from October, the regulator said, plunging millions of households into fuel poverty and businesses into jeopardy unless the government steps in.

Ofgem CEO Jonathan Brearley said the rise would have a massive impact on Britain’s households. Another increase was likely in January as Russia’s move to throttle European supplies drives wholesale gas prices to record highs.


Britain’s leading consumer rights champion Martin Lewis said this is a catastrophe. In addition, Martin Lewis warned that people would die if they refused to cook food or heat their homes this winter.

The government response needed to match the scale of the crisis with urgent and finalizing action, says Brearley.

Prime Minister Boris Johnson, who has less than two weeks left in office, said his successor would announce extra cash targeted at the most vulnerable next month.

In addition, he told reporters that Prime Minister Boris doesn’t think we should be trying to cap the whole thing for everybody, the wealthiest households in the country.

In May, the government announced a 400-pound ($472) discount on consumer bills for this winter when price forecasts were significantly lower.

The Opposition Labour Party said that if their party were in power, it would freeze prices, costing around 60 billion pounds a year, which is almost as much as the COVID pandemic furlough scheme.


In the following year, 2023, It expects bills to peak in the second quarter at 6,616 pounds, and households could pay around 500 pounds monthly for energy.

The outpouring has blown up inflation to a 40-year high, and the Bank of England has warned of a lengthy recession.

The Labour party said the country could wait no longer for action. Finance spokesperson Rachel Reeves said This is a national emergency.

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