In Great Britain, too, citizens have to be prepared for significantly higher energy prices. The cost of gas alone will increase by around 80 percent, and the upper price limit will be raised accordingly. Consumer advocates are calling for relief for those in need. In 2023, prices are expected to rise again significantly.
Electricity and gas prices in Great Britain will rise by 80 percent from October: The upper price limit for consumers for an average household will increase from currently 1971 pounds (about 2300 euros) to 3549 pounds (almost 4200 euros), as the regulatory authority Ofgem announced. The reason is the higher wholesale prices for energy after Russia invaded Ukraine.
Welfare organizations have criticized that the nearly doubling of the upper limit will drive millions of people into poverty. They would then have to decide whether they want to eat or heat. Families are facing one of the “darkest Christmases” in years.
The price cap is calculated using the average of the wholesale gas prices of the previous months. Experts expect it to rise to over 4000 pounds in January and up to 6000 pounds in the spring.
Great Britain is currently struggling with around ten percent, the highest inflation rate since 1982 and is expected to slip into recession this year. With rising energy prices, inflation could rise to 13 percent in the coming months. Gas makes up a large part of the UK energy mix. Millions of households heat with gas-powered boilers.
Consumer advocates, energy suppliers and opposition politicians criticize the government and call for more support for the financially weak. Finance Minister Nadhim Zahawi has already promised government aid, including a £400 energy rebate, £300 extra for pensioners and £650 for the poorest households.
The outgoing Prime Minister Boris Johnson had announced that he would leave important financial policy decisions to his successor. The personnel is to be announced on September 5th.
