- The maximum price that companies can charge as of October 1 has been set at 3,549 pounds (€4,202).
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| Stock image of a switch and plug. |
UK energy spike of 80%: price ceiling skyrockets, brutal hit to inflation expected
The maximum price of energy that companies in the sector will be able to charge households in the United Kingdom per year from October 1 has been set at 3,549 pounds (4,202 euros), which represents an increase of 80% compared to the current limit, announced this Friday the British energy regulator, Ofgem.
The maximum price is currently 1,971 pounds (2,325 euros) per year per household. This strong increase is expected to further push up British year-on-year inflation, which currently stands at 10.1% but could reach 13% or more by the end of the year.
This crisis, caused by the increase in the cost of living, has led to numerous strikes in different sectors, including today's British Post Office, longshoremen, or the recent railway workers, demanding wage increases to cope with the situation.
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The price set this Friday will be in force until December 31, when the new rate will be established. The exponential energy increase coincides with the absence of concrete measures by the Government, which has stressed that any decision will be in the hands of the new prime minister who will replace Boris Johnson on September 6.
Ofgem's CEO, Jonathan Brearley, urged the next prime minister -Lis Truss or Rishi Sunak- to adopt "an urgent response to the continuous increase in prices".
"We know the huge impact this maximum price increase will have on UK homes and the difficult decisions consumers will now have to make. I speak to customers regularly and I know today's news will be very worrying for many." the manager to the media.
"The price of energy has reached record levels driven by an aggressive economic act by the Russian state. They have slowly and deliberately cut off gas supplies to Europe causing damage to our homes, businesses, and the economy in general. Ofgem has no choice but to reflect these cost increases in the maximum price," Brearley stressed.
Economy Minister Nadhim Zahawi said this Friday that the rise will cause "stress and anxiety" in people, but stressed that the Executive is working to find a way to help households and that "help is on the way", in reference to the measures that the politician who will replace Johnson can adopt.
The energy rise responds to the rise in wholesale gas prices globally as economies around the world reactivate after the pandemic and also due to the war in Ukraine.
Johnson resigned last July after numerous members of his government resigned in protest at his management, forcing the start of a process to replace him that will conclude on September 5, when the name of his replacement will be known, who will become the new British Conservative Prime Minister. The chief executive will assume power on September 6 and the next day he will appear in the control session of the House of Commons.
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