In the face of gloomy forecasts, concerns about skyrocketing energy prices are growing in Great Britain. According to a recent analysis by Cornwall Insight, energy regulator Ofgem's price cap for an average household is likely to rise to £4,266 a year in January, analysts said.
That would be more than twice as high as currently, where the price cap is still £1,971 (€2,334) annually. According to the calculations, an increase to 3582 pounds (4242 euros) is already to be expected in October.
The numbers are significantly higher than previous forecasts. The reason for the price explosion is, on the one hand, the rising prices for gas and electricity, which are being pushed up by the Ukraine war. On the other hand, the regulator Ofgem wants to use its pricing to prevent other British energy suppliers from going bankrupt, which would put an even greater burden on consumers. The aim is to get them through the crisis so that energy prices fall again in the second half of 2023.
Relief may not be enough
The government has so far announced a relief of 400 pounds (around 474 euros) per household. However, many experts agree that this will not be enough to keep many people from sliding into poverty. Former Labor Prime Minister Gordon Brown warned of a "financial time bomb" and called for an emergency budget. Business associations are also calling on the two candidates to succeed outgoing British Prime Minister Boris Johnson to prepare emergency measures now.
The new government is scheduled to take office in early September. Johnson himself does not want to make any more essential decisions in the next few weeks. Since he was last on his honeymoon while the Bank of England announced its dramatic economic forecasts, the opposition speaks of a "zombie government".
Notice of Advice Cornwall Insight Ofgem
